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Bank of Mexico’s rate hike cycle not over, deputy governor says By Reuters


© Reuters. FILE PHOTO – The façade of the Bank of Mexico Building is pictured downtown Mexico City on February 28, 2019, Mexico. REUTERS/Daniel Becerril//File Photo

By Anthony Esposito

MEXICO CITY, (Reuters) – The Bank of Mexico is still in a cycle of rate increases. One or two more rises are possible, but any monetary policy decisions will be based on incoming data.

Banxico (as the bank is called) raised its benchmark interest rates by 25 basis points, to 4.755%, on Thursday. It was done in an expected four-to-one vote. The move was made by its governing boards, who expressed concern at above-target inflation. Heath voted for the rate increase with the majority.

According to my opinion, the cycle of hikes may not be over, but we might not be too far off the end. In an interview with Reuters, Heath stated that this would depend on how many indicators change.

Heath stated, “I believe that we need to still see maybe one or two (rate) increases,”

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