Mexico central bank hikes interest rate to record 10.0%

The Bank of Mexico hiked its key interest rate by 75 basis points to a record 10.00% on Thursday, in line with forecasts and following in the footsteps of the US Fed’s own recent three-quarter of a percentage point increase.

In a departure from recent decisions, the bank’s five board members did not vote unanimously for the increase, with deputy governor Gerardo Esquivel voting to hike the key rate by 50 basis points.

Meanwhile, USD/MXN is down around 1% on the day following a move lower in the greenback, supporting the emerging market complex. DXY is offered below daily support on US inflation data miss on Thursday.