Containing inflation and bolstering the peso were the key concerns at the Bank of Mexico's latest monetary policy meeting, prompting its board to raise its policy interest rate to 4.75%.

The 50 basis point hike was seen as a move to counter inflationary pressures and keep expectations anchored, but the committee said the increase was not the start of a tightening cycle.

Led by governor Agustín Carstens, the board increased borrowing costs to the highest level since 2009; it was the third hike