Mexico: Banxico raises rates after peso plunge

Mexico: Banxico raises rates after peso plunge

FAQ, Mexico, News, Pre Construction, Property Rental, Retirement
The Central Bank of Mexico (Banxico) announced at its 29 September meeting its decision to raise the monetary policy rate by 50 basis points to 4.75%, returning to levels last seen in 2009. The increase was widely expected, but analysts had never been so divided with forecasts ranging from 25 basis to 75 basis points. Banxico began to tighten the reins in December 2015 and has raised the key interest rate by a total of 175 basis points since then. The Bank’s decision to increase the interest rate followed a period of significant volatility in the peso, which in some retail outlets exceeded the 20.0 MXN per USD threshold. Banxico remained under pressure to support the weakening currency and in its statement it took a hawkish attitude towards keeping the…
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