Mexican central bank raises rates for first time since 2018
Governing board votes three to two for hike, citing above-target inflation and upside risks
The Bank of Mexico raised its policy rate by 25 basis points to 4.25% on June 24, the first rate rise in more than two years.
The board split on the rate increase, with two of its five members favouring keeping the policy rate. Markets had expected Banxico to keep its rate unchanged.
The board said year-on-year inflation reached 6.02% in the first half of June, above its target of 3%, plus or minus one percentage point. The last published official figures showed year-on-year inflation reaching
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