Mexico’s central bank boosted borrowing costs by half a percentage point in a widely-anticipated move to tame inflation that’s at two-decade highs, adding that it could consider increasing the pace of hikes going forward.
Banxico, as the bank is known, raised the key rate to 7% on Thursday, as expected by 23 of 24 economists surveyed by Bloomberg. The increase matched that of the Federal Reserve, which Mexican policy makers traditionally follow to avert abrupt capital outflows.
