Banxico raises rate to 5.75 percent

The Bank of Mexico (Banxico) Board of Governors decided to increase the Interbank interest rate 50 basis points on 14 December 2016 from 5.25 to 5.75 percent (Excelsior). The increase is the sixth over last twelve months and stands in line with the U.S. Federal Reserve’s announced increase on 14 December (Excelsior). Banxico commented the increase was made with the goal of combatting inflationary pressures and considered the 25-basis point hike made by the U.S. Federal Reserve. The 5.75 percent rate is at its highest level since May 2009 (Milenio).