Mexico, Colombia Leave Door Open to Additional Interest Rate Hikes on Inflation

Mexico and Colombia, two of Latin America’s most hawkish central banks, are refusing to call a halt to their record monetary policy tightening cycles even after boosting rates again Thursday.

Both central banks matched the expectation of most economists and raised their key rate by 25 basis points each as they fight stubbornly high inflation expectations. Banxico, as the Mexican central bank is known, increased borrowing costs to 11.25% while Colombia hiked its benchmark rate to 13%. The decisions were both approved unanimously.