Skip to content
Markets
Economics

Mexico Lifts Rate by Half Point, Hints at Stepping Up Pace

  • Increase is in line with Federal Reserve’s hike last week
  • Banxico expected to pace tightening by US counterpart for now
Updated on

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.