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Rate hikes coming in the Andes

Central banks in Colombia and Chile are set to leave interest rates unchanged at their meetings next week, but we think rates are likely to rise sooner, and a little further, than the markets are currently pricing in. Meanwhile, there remains a long way to go until Brazil’s presidential election, but this week’s political jockeying provides an early sign that market-friendly candidates are gaining a momentum at the expense of the populists who are currently leading the polls.

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