All policymakers said they raised interest rates in a bid to protect the purchasing power of the peso, which had slumped more than 7 percent against the dollar in May, its worst monthly loss in four years.
Most of the board of Mexico’s central bank thought they needed to act to ensure the peso’s losses would not drive up inflation expectations and all members agreed they would act whenever necessary to ensure convergence toward their 3 percent inflation target.
Most central bankers also agreed there could be a prolonged period of greater uncertainty following the Brexit vote, which drove the peso to a record low.
Policymakers said that uncertainty could be accentuated by the U.S. presidential race, where candidate Donald Trump has threatened to disrupt trade ties with Mexico if he wins.
While the minutes did not mention Trump, some investment bank analysts have said strong polling gains by that candidate could hurt the peso.
The peso has gained more than 1 percent since the hike. Policymakers fear that peso losses could drive foreign holders of peso-denominated debt to dump bonds, sparking a mass exodus that would hammer the peso.
Most policymakers thought the balance of risks for both inflation and growth had deteriorated, even though they see annual inflation ending the year slightly above 3 percent.
more recommended stories
Mexico’s Polytechnic Institute and local company NC-Tech to create industrial training center 4.0
Mexico, Dec. 14 (Notimex).- The School.
MEXICO TO REGULATE ENTRY AT SOUTHERN BORDER
Mexico ’s top security official said.
Mexico has the potential to become the main supplier of cannabidiol (CBD) in the world
Cannabidiol is a raw material derived.
AMLO asks Mother Earth’s permission to build Maya Train project
Mexican president Andrés Manuel López Obrador.
Mexican model Vanessa Ponce de Leon wins Miss World 2018 beauty contest
A Mexican model and volunteer was.
Christmastime in Mexico is full of traditions
To say that Mexico is a.
Puerto Vallarta Wins 2018 Gay Cities ‘Fun in the Sun’ Award
Puerto Vallarta, Mexico – The warmth Puerto.
Battle between the US & Mexico over the US Dolphin Safe label comes to an end
More than a decade since Mexico.
Mexico will host international Solar Power Fair in 2019
Mexico will host one of the.
Fentanyl lab busted in Mexico City
The Attorney General’s Office (PGR) has.