RIO DE JANEIRO, BRAZIL - Investors are betting that the two central banks lagging behind Latin America's eagerness to raise interest rates are ready to pick up the pace.
As inflation accelerates, monetary policymakers in Colombia and Mexico are under increasing pressure to raise borrowing costs higher and faster. While the specific determinants of price pressures vary across countries, swap dealers are increasingly convinced that both will join their regional peers in embarking on more aggressive monetary tightening.
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