Another Rate Hike at the Bank of Mexico
December 15, 2017
Citing higher-than-desired inflation, the Bank of Mexico under a new president has raised its one-day interbank rate to 7.25% from 7.0%. This is the fourth increase of 25 bps in size this year, following ones in March, May and June. A prior 50 basis point hike last February culminated a series of six half-percentage point advance done also in February, June, September, November and December 2016. From a low of 3.0%, the tightening cycle began with a 25-bp increase in December 2015. The Bank of Mexico seeks to lower inflation to 3% by end-2018 from 6.63% this past November. Energy, food and housing have been pushing inflation higher.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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