Mexico has increased the refinancing rate

© Flickr / J. P. C. Peso. The national currency of MexicoMexico has increased the refinancing rate© Flickr / J. P. C.

Mexican Central Bank on Thursday again raised the refinancing rate by 25 basis points to 7.25%, is spoken in the message of the Central Bank. Now her level is the highest since March 2009, when it was 7.5%.

This decision was made given the recent actions of the US Federal reserve, which by the end of the two-day December meeting raised the benchmark interest rate to 1.25-1.5% 1-1 25% per annum.

This is the tenth consecutive rate increase in Mexico and a fifth in 2017. From December 2015 it rose by 425 basis points. The Central Bank explained that the rate hike due to inflationary pressure on the national currency, the peso, which lost a significant amount of its value against the dollar in recent months. In addition, the Bank recognizes that to reach previously planned level of inflation for the year to 3% will be more difficult than anticipated, and to achieve this it will be possible not earlier than the end of next year.

Last year, the Central Bank of Mexico has repeatedly raised the base rate, trying to fight inflationary pressure, the weakening of the peso. A gradual increase in rates began after the results of the referendum in Britain on EU exit and sharp fluctuations of the national currency, and then the victory of Donald trump in the presidential elections in the United States.