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Mexico Delivers Record Rate Hike, Says More Increases Coming

  • As expected, Mexico’s central bank hiked by 75 basis points
  • Bank signals willingness for “same forceful measures” ahead
The Bank of Mexico (Banxico) in Mexico City.

The Bank of Mexico (Banxico) in Mexico City.

Photographer: Alejandro Cegarra/Bloomberg
Updated on

Mexico’s central bank accelerated the pace of its interest rate increases Thursday, delivering the country’s biggest ever hike and signaling willingness to keep boosting rates at the same pace if needed.

The board of Banxico, as the bank is known, unanimously voted to raise its key rate by 75 basis points to 7.75%, as expected by all 27 economists in a Bloomberg survey. The increase, the largest since the bank adopted an inflation targeting system in 2008, matched the Federal Reserve’s hike last week as Banxico tends to follow its US counterpart to avert abrupt capital outflows.