Mexico central bank makes record rate increase, flags more hikes
MEXICO CITY, June 23 (Reuters) - Mexico's central bank on
Thursday increased its benchmark interest rate by a record 75
basis points to 7.75%, saying more rate hikes would be
forthcoming if necessary as the Bank of Mexico seeks to tame
galloping inflation.
Inflation in the year through mid-June hit 7.88%, well above
the central bank's target of 3%, plus or minus one percentage
point, data earlier in the day showed..
"For the next policy decisions, the board intends to
continue raising the reference rate and will evaluate taking the
same forceful measures if conditions so require," the bank said
in a post-meeting statement after its ninth hike in a row.
Banxico, as the bank is known, has been raising rates as it
tries to moderate spiraling consumer prices, having increased
the benchmark rate by 375 basis points since mid-2021.
(Reporting by Anthony Esposito, Dave Graham and Isabel Woodford
Additional reporting by Rodrigo Campos)
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