Mexico hikes rates to stabilise peso depreciation
Bank of Mexico surprises markets with 50bp hike to stem currency depreciation
The Bank of Mexico hiked interest rates by 50 basis points to 4.25% on June 30 in an attempt to support a plummeting peso, the bank announced in its latest monetary policy statement.
This is the second time this year the bank has increased interest rates. Similar currency movements in February pushed the bank's board to tighten by 50bp and directly intervene in the foreign exchange market for the first time since 2009.
"I didn't expect 50bp. In fact, one might have expected them to remain on
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