Mexico and Colombia are expected to raise interest rates Thursday as they near the end of their record monetary policy tightening cycles.
The central banks of both countries, seen as among the most hawkish in emerging markets, are each expected to boost rates by a quarter percentage point and may even signal they are halting the aggressive cycle of increases started in 2021.The decision by the US Federal Reserve to hike its rates by 25 basis points last week increased the odds both central banks would follow its lead and take a similar action. Elsewhere in Latin America, Brazil and Chile already stopped the increases in borrowing costs initiated with the inflation spike triggered by the recovery from the Covid-19 pandemic.
Source : Mexico and Colombia Approaching End of Interest Rate Hike Cycle