Bank of Mexico rises rates to 7.75% as expected after 2 months of MXN depreciation. USD/MXN extends bearish correction after the decision, heads for the lowest close since June 4. As most expected, the Bank of Mexico rose the key interest rate by 25bp from 7.5% to 7.75%, the highest level since 2009. The decision was unanimous. Banxico warned that if necessary would adjust the monetary policy in a timely and firm manner to reach the 3% inflation target and in order to keep inflation expectations anchored. Regarding the “trade war”, the central bank expects a limited impact from the tariffs between the US and Mexico. USD/MXN gains momentum after rate hike The Mexican peso lost 15% from mid-April to mid-June against the US Dollar amid tensions across emerging market. The quick and sharp depreciation of the peso is seen as the main reason for today’s actions. USD/MXN peaked last week slightly below 21.00 and since then it has been moving with a bearish bias. Today is falling for the fifth-day in-a-row and after Banxico’s statement printed a fresh 2-week low at 20.23. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD finds support near 1.33 as WTI fails to hold above $66 FX Street 3 years Bank of Mexico rises rates to 7.75% as expected after 2 months of MXN depreciation. USD/MXN extends bearish correction after the decision, heads for the lowest close since June 4. As most expected, the Bank of Mexico rose the key interest rate by 25bp from 7.5% to 7.75%, the highest level since 2009. The decision was unanimous. Banxico warned that if necessary would adjust the monetary policy in a timely and firm manner to reach the 3% inflation target and in order to keep inflation expectations anchored. Regarding the "trade war", the central bank expects a limited impact from the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
