EMERGING MARKETS-Colombia's peso slips ahead of rate decision; EM stocks head for fifth week of gains

* Mexico inflation will trend downward after speeding up in Jan - president * Colombia central bank set to raise interest rate one last time * Chile central bank keeps benchmark interest rate at 11.25% * Mexico to continue to support state-run Pemex - President * Latam FX edges up, stocks off 0.5% By Bansari Mayur Kamdar Jan 27 (Reuters) - Colombia's peso ticked lower ahead of an interest rate decision later on Friday where the central bank is seen delivering the last hike of the cycle, while emerging market stocks were subdued following a drop in Indian shares. Stocks in emerging markets were flat by 1504 GMT but still on track to post their fifth straight weekly gain. "Despite the recent rally, we believe that emerging markets' outperformance has further to run," Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note. "We expect EM stocks to deliver mid- to high-single-digit positive returns this year, and the MSCI EM index to end the year at 1,100, led by China’s economic reopening and the positive spillover effect into other emerging markets." Emerging market debt and equity saw their strongest inflows in almost two years, averaging $7.1 billion over the last four weeks, data from BofA Global Research showed. Limiting gains on the broader index, Indian shares fell as Adani Enterprises' stock plunged after a scathing report by a U.S. short seller sparked a selloff in the conglomerate's listed firms and cast doubt on the success of the company's record $2.45 billion secondary share sale. "Clearly, the Hindenburg report has tabled enough very serious questions that unless answered adequately will put off many," said Hasnain Malik, director of emerging and frontier markets equity strategy at Tellimer Research. In Latin America, the Colombian peso slipped 0.3% against the dollar, but was still on track for its third straight weekly gain. Colombia's central bank board is set to raise its benchmark interest rate at its meeting at 2000 GMT, a Reuters poll showed, in a final attempt to control high inflation and in spite of slowing growth predicted for this year. The Brazilian real edged lower, while Mexico's peso eked out slim gains against the greenback. Mexico will continue to support the heavily indebted state-run oil company Petroleos Mexicanos (Pemex), President Andres Manuel Lopez Obrador said, adding that the finance ministry has a plan for Pemex's upcoming bond payments. The president also said Mexico's inflation would begin to slow down after accelerating in January. Chile's peso slipped 0.2%, snapping a five-day winning streak after the Andean nation's central bank maintained its benchmark interest rate overnight at 11.25%, as expected. The Peruvian sol added 0.5% against the dollar and was on track for a weekly gain after two weekly losses. Overall, MSCI's index for Latin American currencies gained 0.2%, while the broader emerging markets currencies index was muted. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1052.78 0.03 MSCI LatAm 2342.40 -0.54 Brazil Bovespa 112708.65 -1.29 Mexico IPC 55263.25 0.18 Chile IPSA 5336.27 0.04 Argentina MerVal 260450.48 -0.401 Colombia COLCAP 1291.70 -0.78 Currencies Latest Daily % change Brazil real 5.0757 -0.05 Mexico peso 18.7805 0.05 Chile peso 803.2 -0.19 Colombia peso 4512.36 0.28 Peru sol 3.815 0.13 Argentina peso (interbank) 185.6500 -0.17 Argentina peso (parallel) 382 0.79 (Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Jason Neely)