Citigroup Predicts Record Mexico Rate Boost as Trump Sinks Peso

09/22/16 Bloomberg

pesomexicanoAs far as Citigroup Inc. is concerned, Mexico has little choice but to carry out an unprecedented interest-rate increase to arrest a plunge in the peso triggered by Donald Trump’s recent surge in U.S. presidential polls.

Mexico’s exchange rate has tumbled 6.7 percent in the past month, the biggest slide among the world’s major currencies. Citigroup economist Sergio Luna now predicts Banco de Mexico will lift its key lending rate by 0.75 percentage point on Sept. 29, the most since the bank adopted a new benchmark in 2008.

Read more…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s