Mexico Hikes Rates By 50bps As Inflation Soars

The Central Bank of Mexico hiked rates 50bps to 6.25% (as expected) and sent the peso rallying modestly. As Bloomberg notes, Banxico appears more concerned at inflationary pressures than growth slowdown.
Mexico Central Bank Issues Statement Following Rate Decision: Banxico to Closely Watch Mid, Long-Term CPI Expectations Banxico to Watch Potential FX Pass-Through to CPI Banxico to Continue Watching Policy Posture vs U. S. Fed Banxico to Closely Monitor Gasoline Prices Bloomberg Intelligence Latin America Economist Felipe Hernandez:

This post was published at Zero Hedge on Feb 9, 2017.

 

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