Most Mexico cenbankers think enough hikes for now – minutes

4/12/2017 Reuters

banco de mexicoMexico’s central bank board members thought they had tightened borrowing costs enough to contain the risks from a slump in the peso and a hike in gasoline prices with last month’s rate hike, minutes showed on Wednesday.

Policymakers voted 5 to 0 to raise the bank’s key rate by 25 basis points to 6.50 percent at their March 30 meeting, when they raised borrowing costs for the fifth meeting in a row to a nearly 8-year high.

However, all members thought they had room to slow the pace of hikes to a 25 basis-point move from a string of half-percentage-point hikes after a big rally in the peso.

Most members believed the 325 basis points they had raised rates since late 2015 was “an appropriate posture to face the shocks that have been seen so far,” the minutes said.

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