Bank of Mexico raises interest rate

The Mexican Central Bank (Banxico) decided to increase its interest rate by 50 basis points on 17 November 2016, bringing the benchmark interest rate to 5.25 percent (Informador). Market volatility generated by the triumph of Donald Trump forced Banxico to raise its benchmark interest rate with the objective of counteracting inflationary pressures and keeping inflation expectations on target (Informador and Expansion). This is the fourth upward adjustment so far in 2016, and Expansion noted the last time Banxico's benchmark rate stood as high as 5.25 percent was in June 2009 (Expansion).