# Mexican Peso Gains on Banxico’s Rate Hike Surprise and Hawkish Shift, USD/MXN Sinks | Forex trading, free forex education | Forex.ca

> Banxico raised its overnight rate by 25 basis points to 4.25%, surprising markets, and adopted a more hawkish tone. The bank said inflation is running above forecasts, with headline CPI at 6.02% y/y in early June, and expects convergence to its 3% target to be delayed to the third quarter of 2022.

- Date: 2021-06-24 · published 2021-06-24T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/46804-mexican-peso-gains-on-banxico-s-rate-hike-surprise-and-hawkish-shift-usd-mxn
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

The surprise hike and warning of persistent inflation strengthen the peso and signal tighter Mexican credit, which can slow feed and livestock expansion and modestly reduce demand for imported feed ingredients.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- forex.ca: https://www.forex.ca/mexican-peso-gains-on-banxicos-rate-hike-surprise-and-hawkish-shift-usd-mxn-sinks/

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