Mexico hikes interest rate to near eight-year high to fight inflation

February 10, 2017

Mexico's central bank raised its benchmark interest rate on Thursday to a nearly 8-year high in a bid to curb rising inflation after a steep hike in gasoline prices and weakness in the peso sparked by Donald Trump's U.S. election win.

The Banco de Mexico hiked interest rates MXCBIR=ECI by 50 basis points to 6.25 percent, the highest level since March 2009 and in line with expectations in a Reuters poll.

The central bank said it raised rates to avoid consumer price contagion following a jump in gasoline prices and to anchor inflation expectations . . .

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