Mexico pulls trigger on Trump ‘contingency plan’

11/17/16 CNN Money

download (6).jpgMexico just showed the first signs of its “contingency plan” to weather a Donald Trump presidency. To save the suffering Mexican peso, the central bank, known as Banxico, raised its key interest rate Thursday, citing the U.S. election as the main reason. “The view for the global economy became more complex, among other factors, as a consequence of the election process carried out in the United States and its result,” Banxico officials said in a statement.

Banxico raised interest rates 50 basis points, or 0.50%. Investors didn’t think that was enough. The peso had been flat earlier in the day, but shortly after the announcement it was down 1% against the dollar.”The markets were expecting somewhat more,” said Carlos Serrano, chief Mexican economist at BBVA.

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