Banxico ends 2018 with its highest interest rate in a decade

The central bank raises its benchmark interest rate to 8.25%.

CITY OF MEXICO – The Bank of Mexico (Banxico) on Thursday raised the price of money for the fourth time this year.

The central bank raised its reference interest rate by 8.2 basis points to 8.25%, from the 8% it registered last November, according to the monetary policy announcement.

The increase was in line with what was expected by analysts in a survey by the Reuters news agency.

Banxico raised the rate by 25 basis points last month citing inflationary pressures and warned of the risks of some new government policies for economic growth and price formation.

The Federal Reserve in the United States also raised its interest rate by 25 basis points on Wednesday during its monetary policy meeting, which has weakened the dollar and dragged the stock markets on Wall Street.

Source: Reuters

The Mazatlan Post