Following the lead of the U.S. Federal Reserve, the Bank of Mexico raised its interest rates for the first time in eight years on Thursday Dec. 17.
Hoping to shore up the peso, Mexico’s central bank raised borrowing costs for the first time in eight years, in spite of record low inflation, after the U.S. Federal Reserve raised rates Wednesday to a range of 0.25 to 0.5%.
The Bank of México raised its interbank rate by 25 basis points, to 3.5% in a move that was not unexpected.
Banxico issued a statement saying the increase was due primarily to yesterday’s action by the Federal Reserve, and was intended to avoid further erosion in the value of the peso and inflationary pressure.
The peso is down more than 15% in relation to the dollar this year, and hit a new low last week, dropping to 17.44 pesos to the dollar.
The bank said the balance of risks had improved for the Mexican economy after a higher-than-expected increase in Gross Domestic Product in the third quarter, greater consumer spending, more investment and declining inflation.
On the other hand, industrial output and exports have slowed
more recommended stories
Cozumel returns to lead the cruise industry in Mexico and South America
The general director of the Port.
According to Mexican businessmen, the Maya Train project will only be profitable for Quintana Roo and Yucatán
In spite of the planning of.
2018 Merida’s International Festival of the Maya Culture has been cancelled
The State Government reported that it.
Organic products are becoming more popular in Mérida
Everyday, more and more companies offer.
Local transport companies will invest 250 million pesos in new Cancun-Tulum Metrobus
In order to cover the growing.
While Venezuelans suffer and die of hunger, Maduro eats at one of the most expensive restaurants in the world (VIDEO)
A viral video showing Venezuelan president Nicolás.
Tulum’s “La Calma” Ecoresort master plan rejected by Semarnat
On September 12th, the environmental organization.
Organ donation culture increases in Yucatan
September 17, 2018 (ACOM) .- The.
New air route Merida-Villahermosa
Viva Aerobus, Mexico’s ultra-low-cost airline, with.
Criminology expert warns about possible increase of organized crime activity in Yucatán
“Poverty levels in the state of.