Mexico's central bank raises interest rates by 50 basis points

The Central Bank of Mexico (Banxico) increased its interest rate by 50 basis points in line with market expectations after four consecutive meetings of 75 basis point hikes. According to the statement made by Banxico, the benchmark interest rate was raised from 10.00 percent to 10.50 percent. The market expectation was that the interest rate would increase by 50 basis points. Thus, Banxico made its 13th consecutive interest rate hike. The board announced that it will comprehensively monitor inflationary pressures as well as all factors that have an impact on inflation. Inflation in Mexico is at 7.80 percent annually.