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Dilemma for Mexican economy in thrall to Uncle Sam

Wednesday, December 16, 2015

Economic theory would suggest that you do not hike interest rates when inflation is at a record low. But that is precisely what Mexico is poised to do this week.

The Bank of Mexico faces the prospect of having to raise its historically low 3% benchmark rate at a time when inflation has been setting record lows for each of the past seven months.

Source: Financial Times