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Several newspapers have recently reported the news that Colombia's central bank will likely increase interest rates. In particular, an article reads that Colombia's central bank
Several newspapers have recently reported the news that Colombia's central bank will likely increase interest rates. In particular, an article reads that "Colombia's central bank is likely to raise borrowing costs to 11% on Saturday at its penultimate meeting of the year, in tandem with policymakers around the world who are trying to combat high inflation."
Explain below the link between interest rates and inflation and what are the expected effects on the Colombian currency's value.
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