* MSCI Latam stocks rise 1.3%, currencies up 0.5%

* Mexico's peso edges higher on interest rate hike bets

* Chile's peso gains 0.3% as copper prices climb

* Colombia GDP data due at 1200 EST/0400 GMT; peso jumps

By Anisha Sircar and Bansari Mayur Kamdar

May 16 (Reuters) - Mexico's peso inched higher on Monday as central bankers hinted at more interest rate hikes to control surging inflation, while most other Latin American currencies eked out gains with a cautious eye on the dollar's flirtation with two-decade highs.

MSCI's index of Latam currencies .MILA00000CUS rose 0.5% as the dollar index =USD consolidated gains near a 20-year peak hit last week. Stocks .MILA00000PUS rose 1.3%.

Mexico's peso MXN= gained 0.3% against the dollar. Mexican central bank Governor Victoria Rodríguez said in an interview Link published on news platform El Financiero over the weekend that the bank was ready to hike its monetary policy rate faster, if necessary.

On Friday, Bank of Mexico board member Jonathan Heath said there is still a "way to go" on tightening policy following the bank's 50-basis-point rate hike to 7.0% last week.

"Latin American currencies seem better for emerging market investors and definitely places like Brazil, with people thinking they might be closer to the end of their tightening cycles versus some other countries that have a lot more to come," said Rachel Ziemba, founder of Ziemba Insights.

A flight of capital from Asian markets due to recent dour macroeconomic data from China, as well as outflows from Europe, are boosting Latam assets, Ziemba added.

Brazil's real BRL= BRBY advanced 0.4% before trimming its gains after central bank figures showed government debt as a share of gross domestic product fell to 78.5% in March from 79.2% in February.

Chile's peso CLP= rose 0.3% as copper prices firmed after China's plans to ease COVID-19 curbs raised demand hopes. A constitutional assembly in Chile, the world's top producer of copper, on Saturday rejected a major overhaul to mining rights.

Brazilian state-run oil firm Petrobras SA PETR3.SA and metal and mining company Vale SA VALE3.SA climbed more than 2% each, tracking firm commodity prices and lifting Brazil's Bovespa .BVSP by 0.8%.

Colombia's peso COP= added 0.8%, set for its best day in more than a month, ahead of GDP data due later on Monday. The economy is expected to have grown by 7.5% in the first quarter from a year ago.

Peru's sol PEN= was little changed after official figures showed the economy grew 3.79% in March compared with a year earlier, lower than the central bank's 4% forecast, with the key mining industry shrinking as social conflicts hit production.

Elsewhere, the Russian rouble RUBUTSTN=MCX EURRUBTN=MCX strengthened past 64 to the dollar and to its highest level in nearly five years against the euro, supported by restrictions on currency trading.

Key Latin American stock indexes and currencies at 1500 GMT:

Stock indexes

Latest

Daily % change MSCI Emerging Markets

1006.73

0.22 .MSCIEF

MSCI LatAm

2276.25

1.44 .MILA00000PUS

Brazil Bovespa

107707.36

0.73 .BVSP

Mexico IPC

49721.23

0.29 .MXX

Chile IPSA

4904.12

1.11 .SPIPSA

Argentina MerVal

89129.48

0.376 .MERV

Colombia COLCAP

1520.16

0.53 .COLCAP

Currencies

Latest

Daily % change Brazil real

5.0592

-0.05 BRBY

Mexico peso

20.0870

0.00 MXN=D2

Chile peso

857.5

0.33 CLP=CL

Colombia peso COP=

4075.85

0.68

Peru sol

3.77

0.48 PEN=PE

Argentina peso

117.8700

-0.37 (interbank) ARS=RASL

Argentina peso

201

1.24 (parallel) ARSB=

Reporting by Anisha Sircar in Bengaluru; Editing by Paul Simao