Mexico's Central Bank Raises Rates as Inflation Concerns Mount
December 14 2017 - 3:02PM
Dow Jones News
By Juan Montes
MEXICO CITY -- The Bank of Mexico raised interest rates by a
quarter percentage point Thursday after a six-month pause, as
policy makers have grown increasingly worried about high
inflation.
The overnight interest rate target now stands at 7.25% -- the
highest since February 2009.
The policy meeting marked Alejandro Díaz de León's first as the
central bank's governor. He took over two weeks ago facing a tough
situation, with high inflation, slowing economic growth, and a weak
and volatile peso.
The rate move was increasingly expected by markets and analysts
in recent weeks as annual inflation came in above expectations in
November at 6.6%, more than double the bank's 3% target.
The Bank of Mexico had been expecting inflation to start to slow
at the end of the year.
The U.S. Federal Reserve's rate increase this week also left
Mexico's central bank little maneuvering room.
Write to Juan Montes at juan.montes@wsj.com
(END) Dow Jones Newswires
December 14, 2017 14:47 ET (19:47 GMT)
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