Mexico holds rates despite inflation spike

On 24 November, the Bank of Mexico held its benchmark lending rate at 7%, as expected, for a seventh straight month. The central bank also indicated that the recent increase in inflation would be temporary.

The decision on interest rates was widely anticipated. Rates are currently at a two-year low and may go lower still next year as the slowing economy in Mexico and the United States ease inflationary pressures.

Inflation jumped to 4.3% annually in October, the fastest rate since July 2005, bu

To continue reading...