BOGOTA Colombia's central bank could call time on its upward monetary cycle after inflation in Latin America's fourth-largest economy slowed in May, bank board chief Leonardo Villar said on Tuesday.

Villar also forecast high profits for the bank in 2023.

The monetary authority has hiked its benchmark interest rate by 1,150 basis points since September 2021 in a bid to curb rampant inflation, which slowed to 12.82% for the 12 months through April.

While inflation decelerated from a high of 13.34% in the 12 months through march, it is still more than four times higher than the bank's target of 3%.

The bank raised its benchmark rate by 25 basis points to 13.25% at the end of April. The bank board will not have a meeting on monetary policy in May.

"We hope that by the time we reach June, the board will have a second month of slowing inflation, which would send a message to the country that, possibly, rates would not rise further," Villar told economic commissions of Colombia's Congress.

"Now is the time to question in what moment we will return to a downward (rate) trajectory, which will depend on more exhaustive monitoring of inflation and where we see three, four, or five months of slowing inflation," he added.

The government's DANE statistics agency will publish May inflation data on June 7.

Villar forecast the bank will post profits of around 11 trillion pesos this year, $2.5 billion at current rates, which would be delivered in 2024.

"These profits... would be incorporated into the government's financial plan ... and would represent a record high," Villar said.

($1 = 4,461.66 Colombian pesos)

(Reporting by Carlos Vargas; Writing by Oliver Griffin)