(Adds details from statement in paragraph 7, additional Villar comment in paragraph 11; changes byline)

BOGOTA, Oct 31 (Reuters) -

Colombia's central bank held its benchmark interest rate at 13.25% for the fourth time in a row on Tuesday, despite government pressure to lower borrowing costs as uncertainty about the impact of inflation lingers.

The decision was backed by five board members, while two directors voted for a 25 basis point cut.

Eighteen of 25 analysts in a Reuters survey said last week the bank would hold borrowing costs where they have remained since April and their highest point in 24 years.

"The board's analysis emphasizes its concern about the losses caused by persistent inflation in the real income of households, especially the poorest, and about the negative impact that inflation has on economic growth and employment in the medium and long term," board chief Leonardo Villar said in a statement.

Finance Minister Ricardo Bonilla, who represents the government on the board, has repeatedly pushed for cuts to the rate.

"I think that maintaining high interest rates is creating an obstacle to economic recovery," Bonilla said during a press conference following the decision.

Most of the board members think it is "not yet appropriate" to cut interest rates, the statement said, adding that it is better to wait for inflation to move towards the bank's 3% target.

The bank's technical team expects annual GDP growth to be 0.4% in the third quarter and the outlook for the full year was revised upwards from 0.9% to 1.2%.

Although the economy has continued its slowdown from the high growth observed in 2021 and 2022, the level of economic activity remains at its long-term trend levels and the unemployment rate is at historically low levels, the statement said.

Consumer prices will have risen 0.35% in October, according to the median estimate of analysts in a Reuters poll this week, which would take annual inflation to 10.60%.

The bank's technical team has slightly raised its 2023 inflation forecast, Villar said, adding the exact figure will be published next week in the quarterly monetary policy report. The figure is below 10%, he said at a press conference.

Inflation expectations for full-year 2023 rose in the survey to 9.62%, from 9.3% the month before. (Reporting by Carlos Vargas and Oliver Griffin Writing by Julia Symmes Cobb and Oliver Griffin Editing by Marguerita Choy and Richard Chang)