Mexico in surprise rate cut to curb inflation

Mexico’s central bank unexpectedly raised its key interest rate for a sixth straight meeting to keep an increase in consumer prices from deepening after inflation accelerated to almost double policy makers’ target. The peso erased its loss.

Banco de Mexico, led by Governor Agustin Carstens, lifted its benchmark by a quarter point to 6.75 percent Thursday, surprising most of the economists surveyed by Bloomberg. Thirteen expected the five-member board to raise by a quarter point, while 19 forecast policy makers would opt for a pause.

Source: Bloomberg