Mexico raises rates but calls time on further action

One last rise. That was the message from Mexico’s central bank as it lifted its key lending rate by 25 basis points to 7 per cent and said that should be enough to bring runaway inflation to heel.

The lender has aggressively raised rates by 375 points over the past 16 months to seek to curb a fast depreciating peso that was spooked by the prospect of Donald Trump in the White House, and then fast accelerating inflation, now running at a more than eight-year high.

Source: Financial Times