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Mexico central bank rate raise is first since 2008

Friday, December 18, 2015

The Bank of Mexico raised interest rates for the first time since 2008, despite record-low inflation and relatively slow economic growth, as it seeks to avoid further pressure on the peso.

The central bank lifted the overnight interest rate target by a quarter percentage point to 3.25 percent, as widely expected, in a move that most analysts saw as inevitable after the U.S. Federal Reserve began tightening its monetary policy this week.

Source: Wall Street Journal