# Mexico's central bank delivers own 'hawkish surprise' with rate hike

> The Bank of Mexico's board voted by majority on Thursday to raise its benchmark interest rate, an unexpected move. The peso extended gains after the decision and rose as much as 2% against the U.S. dollar.

- Date: 2021-06-24 · published 2021-06-24T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/46801-mexico-s-central-bank-delivers-own-hawkish-surprise-with-rate-hike
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A surprise Banxico hike lifts the peso and tightens financial conditions in Mexico, a major importer of U.S. feed grains and a buyer of meal and DDGS; a stronger peso slightly lowers the local cost of imports, while the tighter stance weighs on Mexican demand expectations.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/world/americas/mexicos-central-bank-delivers-own-hawkish-surprise-with-rate-hike-2021-06-24/

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