Photo: CFA

By THE PULSE NEWS MEXICO STAFF

In a surprise move to help curb spiraling inflation, the Central Bank of Mexico (Banxico) raised its benchmark interest rates on Friday, Dec. 16, by 50 points, from 5 percent to 5.50 percent.

The last time Banxico raised the rate by 50 points was on Feb. 9, 2017.

Most financial analysts had predicted that Banxico would raise the rate by just 25 points, as it has in the case of the last four increases.

“Global and domestic inflationary pressures continue to affect annual headline and core inflation, which in November registered 7.37 and 5.67 percent, respectively,” Banxico said in a statement.

“The expectations of headline and core inflation for 2021, 2022 and for the next 12 months increased again, as well as those for the medium term, while those for the long term have remained stable at levels above the goal,”

Banxico Governor Alejandro Díaz de León and Deputy Governors Galia Borja, Irene Espinosa and Jonathan Heath voted in favor of the increase, while Gerardo Esquivel voted for an increase of just 25 points.