Mexico central bank tightens monetary policy

Mexico's central bank tightened monetary policy to curb mounting inflationary pressures on Friday by increasing the amount of cash it holds back from the secondary money market.

The central bank raising the money market "short" to 475 million pesos per day from 400 million pesos a day.

The so-called short keeps liquidity in the money market lower than its estimated needs and has been Banco de Mexico's main mechanism for holding local interest rates relatively high and inflation in check.