Mexico Central Bank raises key refinancing rate to almost record levels

© RIA Novosti / Dmitry Samenstellen Mexico. Archival photoMexico Central Bank raises key refinancing rate to almost record levels© RIA Novosti / Dmitry Znamenskiy

Mexican Central Bank on Thursday announced to raise the refinancing rate by 25bps to 8%, which is the second since January 2008, a record (then the rate was increased to 8.25%).

As reported by the Bank, the decision is made on the background of market expectations in light of accelerating inflation and pressure on the national currency, the peso. Since the beginning of the year, the Central Bank of Mexico raised rates three times already – each time by 25 basis points.

The Federal reserve also previously raised rates three times already this year and plans a further increase in December.

How notes portal Universal, largely market concerns relate to the actions of future Mexican President Andres Manuel Lopez Obrador, who canceled the construction of a new airport for Mexico city in Texcoco district, as well as the overall uncertainty for investors in the actions of the new Cabinet, which replaces the current administration on 1 December.

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