Mexico Raises Interest Rate After Peso Plunges to Record Low
- Peso fell to record this week on Trump, public debt concerns
- Third hike of year after half point each in February, June
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Mexico raised borrowing costs for the third time this year on concern that the peso’s tumble to a record low may fuel faster inflation and threaten to roil the nation’s financial markets.
Banco de Mexico increased the overnight rate a half point to 4.75 percent on Thursday, the highest level since 2009. Economists surveyed by Bloomberg before the decision had never been so divided, with forecasts for an increase ranging from a quarter-point to three quarters of a point.