The institution had taken the step because the Mexican peso – one of the most heavily traded currencies in the world – had proven to be highly volatile against emerging currencies and in the context of possible future falls in the price of petroleum, the statement read.
The Bank of Mexico has announced it will hike borrowing costs from 4.25% to 4.75% in a bid to check inflation and stop the peso’s fall in value against the US dollar.
Making its decision to raise interest rates, the Bank of Mexico looked at the US Federal Reserve’s recent call not to shift its own rate.
In June, the institution jacked up the interest rate from 3.75% to 4.25% on the back of the economic uncertainty stirred up by Brexit and because of fears currency depreciation would lead to rampant inflation.
The new rate of 4.75% is the highest since the dark days of the global economic crisis in 2009, and is the second such move by Mexico’s central bank in a matter of months.
Fuente: http://elpais.com/elpais/2016/09/30/inenglish/1475238849_686553.html
