Mexican central bank raises benchmark interest rate to 7.25% from 7.00%

Banco de México recently announced that it decided to raise its benchmark interest rate by 25 basis points to 7.25% from 7.00%. Below are the key highlights, via Reuters, from the official monetary policy statement.

Board was not unanimous on rate decision.

Balance of risk to inflation has deteriorated.

Hiked key rate because simultaneity and magnitude of shocks affecting inflation.

Balance of risks to growth has tilted downwards.

Inflation panorama has become more complex.

Main goal of board is to maintain inflation expectations.

Convergence to 3 pct target will be slower than previously anticipated.

Inflation will reach levels close to objective at end of next year.

One board member voted for 50 basis points rate hike.

Will be vigilant on relative monpol stance with U.S., potential pass through from peso and output gap.

Due to intensification of risks to inflation board ready to act as soon as necessary.

Bank sees annual inflation for 2017 higher than figure for November.