Mexico’s central bank hikes rates, in surprise split decision
Al Jazeera
Banco de Mexico raised its key rate by a quarter point to 4.25 percent in response to a jump in inflation.
Mexico’s central bank unexpectedly raised borrowing costs for the first time since late 2018 in a split decision as concern mounts that persistently elevated inflation may threaten the economy’s rebound. Banco de Mexico raised its key rate by a quarter-point to 4.25% in response to a jump in inflation that policy makers had previously described as transitory. The decision, supported by three of the five-member board, surprised all 23 economists surveyed by Bloomberg who had expected the bank to hold at 4%. Data published Thursday morning showed that inflation accelerated further in early June to 6.02%, also surprising analysts. Banxico, as the central bank is known, targets inflation at 3%, plus or minus 1 percentage point.More Related News