BOGOTA, Jan 31 (Reuters) - Colombia's central bank on Wednesday cut the benchmark interest rate by 25 basis points to 12.75%, as policymakers take advantage of slowing inflation to boost the ailing economy, with some pushing for a deeper cut.

The decision was backed by five board members, while two voted to cut the rate by 50 basis points.

Finance Minister Ricardo Bonilla - who represents the government on the bank's board - voted for the greater 50-basis point cut, he said in a press conference.

"Lowering interest rates is important for the recovery of economic growth," Bonilla said adding that reaching an interest rate of 8% by the end of this year will require deeper cuts.

Bonilla's position was echoed by Colombia's leftist President Gustavo Petro, who has repeatedly pushed for lower interest rates. The president thanked the board for the cut in a post on X.

The board's consensus points to further reductions, board chief Leonardo Villar said in the press conference, and the rhythm of cuts may increase in future.

"The economy continues in the necessary adjustment process so that inflation converges to the target no later than the first half of 2025," the board said in a statement.

The inflationary slowdown was led by prices of food and goods, although other sectors saw faster growth, the board said in a statement.

While external financial conditions improved, a higher-than expected rise in Colombia's minimum wage and the El Nino weather phenomenon - which causes drought in the Andean country - continue to drive inflation, the statement added.

The market was split as to how much the rate would be cut. A Reuters poll found that 11 out of 21 analysts expected the board to cut the rate by 50 basis points to 12.50%, while the remaining 10 forecast a smaller reduction of 25 basis points, which would take it to 12.75%.

Inflation in Latin America's fourth-largest economy closed 2023 at 9.28%, having declined steadily during the nine months through December, though it remains far greater than the central bank's 3% target. (Reporting by Nelson Bocanegra, Carlos Vargas and Julia Symmes Cobb Writing by Oliver Griffin and Julia Symmes Cobb; Editing by Alistair Bell)