According to Credit Agricole, raising interest rates to ‘punishing levels’ might be the only way to halt a brutal selloff in the Chilean and Colombian currencies. The Colombian and Chilean pesos declined 9.8% and 8.6% this month, respectively. Both currencies are trading in uncharted territory since slumping below their all-time lows in early July. Meanwhile, Chile’s central bank raised its benchmark interest rate by 75bps to 9.75% and flagged additional interest rate hikes.