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Mexico’s Drought Is So Severe It Helped Banxico Turn Hawkish

  • Climate may have contributed to interest rate hike: Esquivel
  • Bank added drought to inflation risks after surprise rate hike
Gerardo Esquivel
Gerardo EsquivelPhotographer: Brett Gundlock/Bloomberg

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Mexico’s central bank raised an unusual red flag when it upended markets with a surprise interest rate hike last week: drought may pressure farm prices, it warned.