Mexico's central bank headquarters in Mexico City. Mexico's central bank headquarters in Mexico City.

Bank ups interest rate on inflation rise

Bank of México's benchmark rate up a quarter-point to 6.75%

Despite a stronger peso in recent weeks, inflation continues to show an upward trend that is expected to continue through the year, the Bank of México said today when it announced a quarter-point hike in its benchmark interest rate.

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The sixth consecutive increase, the third this year, bumped the rate to 6.75% and follows an increase in the inflation rate to nearly 6% last month.

That was more than any analyst had expected, Bloomberg reported today, and well over the central bank’s target of 3%.

The peso dipped to a record low in January but has since risen 17%. It was trading at 18.7995 to the dollar in New York after the interest rate announcement.

The bank expects a lower inflation rate towards the end of the year and into 2018.

Today’s rate increase came as a surprise. Most analysts expected the rate to remain unchanged.

Source: Milenio (sp), Bloomberg (en)

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  • K. Chris C.

    Interesting how the Khazarian girft-machine is able to raise their rates, profits, upon the excuse of a symptom of their theft.

    Price-inflation is everywhere a result of the robbery of our deposits and the printing of counterfeit, grift-fiat, a top of that by the Khazarian grift-machine. Ditto the destruction of our capital and the exporting of our jobs.

    Much like a mugger raising the rates he charges you for stealing your money and future from you.

    An American citizen, not US subject.

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