Mexico: Mexico’s central bank raises interest rate amid Fed hike and increasing inflation

Mexico’s central bank voted to raise its benchmark interest rate by 0.25% to 7.00%, citing interest rate increases by the US Federal Reserve and growing inflation in Mexico as key factors contributing to its decision. The decision marks the fourth interest rate increase this year as the country continues to grapple with economic uncertainty and growing inflation.

According to RFi Group’s Mexico PRBC data, inflation is ranked in second place, after the country’s economic outlook, on the list of economic factors Mexican consumers are most concerned about.

According to RFi Group’s Mexico PRBC data, inflation is ranked in second place, after the country’s economic outlook, on the list of economic factors Mexican consumers are most concerned about. 1 in 4 consumers said they are very concerned about the effects of growing inflation on their personal finances over the next 12 months, while a further 31% said they are concerned. 

The country’s central bank decided to increase interest rate when Mexico’s statistics agency released its updated inflation figures which showed mid-June annual inflation increased to 6.30%, its highest level since April 2009.

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