UPDATE 2-Colombia holds interest rate to keep growth on track
* Bank narrows 2013 GDP growth range, keeps 4.2 pct view
* Central bank chief Uribe warns of strong currency
* Most economists see rates steady until next year
* Inflation remains at low end of target range
BOGOTA, Oct 25 (Reuters) - Colombia's central bankers were unanimous in holding the benchmark interest rate at 3.25 percent on Friday for the seventh straight month as signs of a pick-up in growth allowed policymakers to hold off on further easing.
The bank's seven-member board said it was appropriate to keep rates at their lowest level since January 2011, as expected by all 35 economists in a Reuters poll this week.
Latin America's fifth-largest economy was expected to expand at a similar rate in 2013 to the 4.2 percent recorded in 2012, although risks may have increased slightly despite recent signs of strength, the central bank said.
"The available data for the third quarter suggest that economic activity expanded at a faster pace than in the first half of the year, driven by investment," it said in a statement accompanying the rate decision.
Policymakers refrained from taking further action to rein in the strong peso - one risk to growth - after extending an intervention program last month, although central bank chief Jose Dario Uribe said he was not comfortable with the current level around 1882 pesos to the dollar.
"I have said on various occasions ... that we would take a positive view of a bigger devaluation of the peso and that there are reasons to think that devaluation should occur and that at any moment it probably will," Uribe told reporters.
"I don't feel comfortable and I don't think any other member of the board feels content with the current level."
Weak global demand and the prospect of less stimulus in the United States have hit many emerging markets this year, and Latin American peers Mexico and Chile have both cut rates.
CENTRAL BANK'S WORK DONE?
Colombia's central bank has been on hold since March after cuts worth 200 basis points since mid-2012. Most analysts in a Reuters survey this week expect rates to remain steady until year-end to gauge the impact of these cuts, but some see a chance of further easing next month if data continues to be weak.
Industrial output and exports, which have been hurt by the strong peso, disappointed in the third quarter after surprisingly strong economic growth in the April to June period. That weakness has been countered, however, by a pick-up in domestic demand. Mining and construction are also holding up well.
"In terms of monetary policy, the work is done, there is little more the bank can do to help growth, said Munir Jalil, an economist at Bogota-based Citigroup, who expects policymakers to leave the interest rate steady until at least March. "The ball is now in the court of fiscal policy."
Colombia's congress earlier this month approved a budget for 2014 that was 7.3 percent bigger than this year at around $108.1 billion.
The central bank adjusted its growth forecast range to 3.5 percent to 4.5 percent, narrower than the 3 percent to 4.5 percent previously, but stuck with its baseline forecast of 4.2 percent growth.
At 2.16 percent, cumulative inflation in September remained near the bottom end of the central bank's 2 percent to 4 percent target range, government data showed.
Interest rate changes take between 12 and 18 months to cascade through the economy and impact economic indicators.
A survey published this week by the Bogota stock exchange and privately-owned economic think-tank Fedesarrollo showed portfolio managers in Colombia raised their average growth outlook to 3.88 percent from 3.7 percent in September - higher but still far short of the government's 4.5 percent forecast.