LatinNews Daily - 23 June 2017

* The central bank (Banxico) has increased its benchmark interest rate by 25 basis points to 7%, the highest level since 2009. A Banxico statement said that its monetary policy committee had voted in favour of increasing the benchmark interest as part of its efforts to prevent inflation contagion “and to anchor inflation expectations”, as Mexico’s economy continues to adapt to various shocks such as the deprecation of the peso against the US dollar and the liberalisation of petrol fuel prices in the domestic market. These shocks have pushed the national inflation rate in Mexico to 6.3% to the first half of June, double Banxico’s inflation target of 3%. This is the ninth time that Banxico has increased its benchmark interest rate since December 2016 as part of its efforts to contain inflation.

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