Bank of Mexico Raises Rates to Contain Inflation

9/29/2016 The Wall Street Journal

pesomexicanoMEXICO CITY—The Bank of Mexico raised interest rates by a half percentage point Thursday, making good the expectations of most economists, in a bid to contain inflation and bolster a peso hovering near record-low levels.

The central bank led by Agustín Carstens increased the overnight rate to 4.75%. But the bank sought to reassure investors that the half-percentage-point rate increase won’t necessarily be repeated at the next meeting, saying that “it isn’t the start of a tightening cycle.”

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