Banxico takes ‘cruel’ on inflation and raises interest rates by 50 basis points

The Bank of Mexico (Banxico) raised the benchmark interest rate on Thursday by about 50 basis points, Leave it at 5.5% as of Dec 17, in the face of persistent inflation expectations, which have reached their highest levels in the past twenty years.

The Governor of Banxico voted in favor of the resolution, Alejandro Diaz de Leon Carrillo; Deputy Governor Galia Borja Gómez, Irene Espinosa Cantilano and Jonathan Heath. Gerardo Esquivel Hernandez only voted to increase the target overnight interbank rate by 25 basis points to the 5.25% level.

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