The Bank of Mexico just hiked interest rates.
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The Bank of Mexico just hiked rates
Banxico hiked rates by 25 basis points to 6.50%.
Agustin Carstens, Governor of the Bank of Mexico.
Banxico, as the bank is usually called, hiked by 25 basis points to 6.50% in its latest interest-rate decision, as most economists were expecting.
In the accompanying statement, Banxico specifically notes that the decision to raise rates was done with respect to the Fed's decision to tighten policy earlier in March.
Furthermore, the bank stated that "the balance of risks to growth has improved at the margin."
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"Consistent with this, policymakers are also less worried about the peso. While the statement notes that 'significantly uncertainty remains' about the 'external environment' (read: President Trump's trade policies),
Thursday's decision marks the bank's fourth consecutive rate hike since US President Donald Trump's election in November. However, the three previous hikes — at the November, December, and February meetings — were by 50 basis points.
Moreover, the latest decision comes amid a recent recovery in the peso. T
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