Mexico Raises Rate as Inflation Hits Highest Since Recession
- Banxico slows pace of tightening after 4 half-point hikes
- Bank’s decision to raise by quarter point was unanimous
Banxico Follows Fed, Raises Key Rate to 6.50%
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Mexico’s central bank slowed the pace of monetary policy tightening while delivering a fifth consecutive rate increase, after the inflation rate rose to the highest since the 2009 recession.
Led by Governor Agustin Carstens, Banco de Mexico unanimously decided to lift rates by a quarter point to 6.50 percent, in line with the median forecast of 26 economists in a Bloomberg survey. Eight of the analysts had expected a larger half-point increase. The peso strengthened after the decision as the central bank left open the chance for more interest rate increases and said it will take the Federal Reserve’s decisions into account.