# Banxico Seen Hiking Rates Again. How will USD/MXN React? | Forex trading, free forex education | Forex.ca

> Bank of Mexico was expected to raise its benchmark rate by 25 basis points to 4.75% on Thursday, its third consecutive increase. Headline inflation was 5.87% year on year and core inflation 4.92%, both well above the central bank's 3% target. Traders were focused on the policy statement for clues about the tightening path.

- Date: 2021-09-29 · published 2021-09-29T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/45298-banxico-seen-hiking-rates-again-how-will-usd-mxn-react-forex-trading-free-forex
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Higher Mexican rates support the peso and reflect inflation pressure in a major importer of US corn and soymeal. The hike is already priced in, so the direct effect on feed grain prices is small.

## Read by commodity

- USDMXN: neutral

## Sources

- forex.ca: http://www.forex.ca/banxico-seen-hiking-rates-again-how-will-usd-mxn-react/

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