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Colombia Swap Rates Climb After Central Bank’s Split Decision

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Colombia’s swap rates rose the most since 2012 after some central bank board members argued for a quarter-point increase of benchmark borrowing costs as a weaker peso stoked inflation by raising import prices.

The seven-member board voted Friday in a split decision to leave the benchmark rate at 4.5 percent after unanimous votes in prior meetings. Colombia’s peso dropped 36 percent over the past year as policy makers from Mexico to South Africa stepped up intervention, raised interest rates or signaled an end to monetary easing to support their currencies. The decline in the Colombian tender is the biggest among 24 emerging-market tenders after the Russian ruble.