Mexico's central bank hiked borrowing costs on Thursday for the first time in seven years in a bid to stem further weakening in the peso after the Federal Reserve lifted U.S. interest rates the day before.
The Banco de Mexico raised its benchmark interest rate MXCBIR=ECI by 25 basis points to 3.25 percent from a record low, as expected by 19 of 25 analysts surveyed by Reuters this week.
The central bank said it was raising interest rates even though inflation was at a record low because the Fed had hiked by a quarter percentage point . . .
