# Banxico hikes rates 50bps; USD/MXN testing key support

> Banco de México raised its benchmark rate by 50 basis points, from 5.5% to 6%, as widely expected. The bank cited inflation tied to the Russia-Ukraine war, with March CPI at 7.29% and core CPI at 6.68%. It also raised its 2022 inflation forecast to 5.8% from 4.9%.

- Date: 2022-03-25 · published 2022-03-25T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/42491-banxico-hikes-rates-50bps-usd-mxn-testing-key-support
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Higher Mexican rates support the peso, which lowers the cost of imported feed ingredients priced in dollars for Mexican buyers. Sustained inflation pressure could also weigh on Mexican feed and meat demand.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- forex.com: https://www.forex.com/en/news-and-analysis/banxico-hikes-rates-50bps-usdmxn-testing-key-support/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.