To increase latency switch from KVM based virtualization to qemu64 and set "Rate limit (MB/s):" to "10" or so. This will increase overall latency massively.
If you want to decrease it: do you have multiple physical CPUs? If not --> disable Numa. (I have no idea if the effect is more than just measurable...)
That's the only hint I can derive from that small set of information you gave us.
How do you measure latency? Why do you think it is bad? What is your goal? What kind of CPU? Ram? Assigned Ram? Local Storage? NAS/SAN? Filesystem? ..., ...? Guest OS? Passthrough devices? ...?