Mexico seen ending hiking cycle on bet inflation near peak

8/10/2017 Reuters

pesoAfter a string of interest rate hikes, Mexico’s central bank is expected to hold borrowing costs steady on Thursday on signs that a spike in consumer prices is close to peaking and following a recovery in the peso currency.

The Banco de Mexico is expected to leave unchanged its benchmark rate 7.00 percent in its 1 p.m. [1800 GMT] announcement, according to 18 analysts surveyed by Reuters.

The central bank hiked rates in its previous seven meetings, taking the rate to a more than eight-year high.

One member of the board voted to hold rates at the last meeting, and analysts expect the bank will now signal a pause after raising its main rate by 400 basis points since the end of 2015 to counter repeated slumps in the peso.

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