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Higher commodity prices to bring fresh set of policy challenges

We have nudged up our near-term projections for commodity prices in response to recent rises and as a result have revisited our forecasts for Latin America. Growth is still likely to slow next year, but not by as much as we had previously envisaged. At the same time, capital inflows are likely to remain fairly resilient in the near-term at least, making asset price bubbles a greater threat.

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