Mexico’s central bank has decided to raise its interbank interest rate by one-half percent to 5.25 percent, citing “a more complex world economic panorama, caused among other things by the U.S. elections.”
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Thursday’s decision was the second time in as many months the Bank of Mexico has raised the rate.
In September, it raised the rate a half-point to 4.75 percent, seeking to shore up a weak peso.
The volatile peso has depreciated significantly against the U.S. dollar.
Some analysts had been expecting a larger increase, given uncertainty surrounding the U.S. presidential election of Donald Trump.
Trump has pledged to renegotiate the North American Free Trade Agreement, deport millions of migrants and build a border wall.
The peso’s interbank exchange rate weakened from 20.34 to $1 to 20.41.