Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Economy

Mexico's central bank hikes interest rate to 6.75 pct to fight inflation

May 19, 2017


Abstract : Mexico's central bank (Banxico) made its third adjustment of the year to its monetary policy on Thursday, raising its benchmark interest rate from 6.5 to 6.75 percent in order to halt the rise of inflation.

墨西哥央行

 

MEXICO CITY, May 18 (Xinhua) -- Mexico's central bank (Banxico) made its third adjustment of the year to its monetary policy on Thursday, raising its benchmark interest rate from 6.5 to 6.75 percent in order to halt the rise of inflation.

"Despite favorable developments that have generally been observed in national financial markets, uncertainty remains in the external environment," said Banxico in a statement.

Mexico's inflation rate, which stood at 5.82 percent in April, has been affected by a number of factors in the first months of 2017, including hikes in fuel prices, passenger transport fares and certain agricultural products.

According to Banxico, the Mexican economy faces a "very complex environment," with the bank recommending that the country's macro-economic fundamentals should be strengthened, public finances should be consolidated and the monetary policy should be adjusted.

The bank will also remain attentive concerning the evolution of the monetary relationship between Mexico and the U.S., as part of its ongoing mission to bring inflation to three percent.

In 2016, the institution raised interest rates five times, to combat inflation as well as to control a fluctuating exchange rate. The peso slumped to a record low against the U.S. dollar after Donald Trump was elected as U.S. president last year, due to his stern rhetoric toward Mexico.

Mexico on Thursday responded positively to news that the U.S. government had formally notified Congress of its intent to renegotiate North American Free Trade Agreement. These renegotiations could play a major role in determining Mexico's future economic outlook.

Scan the QR code and push it to your mobile phone

Keyword: Mexico Interest-rate Banxico

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial