Bank of Mexico hikes rates amid fears of rising inflation risks
Uncertainty over Nafta negotiations clouds economic outlook, experts say
The governing board of the Bank of Mexico increased interest rates by 25 basis points to 7.75% on June 21, to tackle heightened inflationary pressures.
The board voted unanimously to hike rates to counter increased inflationary risks. It said these were caused especially by higher energy prices and a continued fall in the peso.
Annual headline inflation continued to decrease, from 4.55% in April to 4.51% in May, the central bank said.
Over the past two months, the peso has depreciated by 12.7
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