Economics
Banxico Raises Rate to 11.25% as End of Hiking Cycle Nears
- Latin American nation continues its record hiking cycle
- Mexico’s central bank raises borrowing costs to all-time high
The Bank of Mexico (Banxico) in Mexico City, Mexico, on Friday Feb. 11, 2022.
Photographer: Alejandro Cegarra/BloombergThis article is for subscribers only.
Mexico slowed the pace of interest rate increases Thursday, raising borrowing costs by a quarter percentage point, as decelerating inflation has policymakers on the cusp of ending a record tightening cycle.
Banxico, as the central bank is known, raised its key rate to 11.25%, matching the forecast of 27 of 28 economists surveyed by Bloomberg. The increase was in line with the board’s guidance given after its half-point February hike, which at the time surprised all analysts, who’d expected a quarter-point move up.