# Mexico: Central bank raises rates by 25bp, MXN gains momentum — Octa

> The Bank of Mexico raised its benchmark rate 25 basis points to 6.75%, the highest since March 2009, in a unanimous decision that surprised most consensus forecasts. The peso strengthened after the decision, with USD/MXN falling to 18.78.

- Date: 2017-05-18 · published 2017-05-18T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/71218-mexico-central-bank-raises-rates-by-25bp-mxn-gains-momentum-octa
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A stronger peso lowers the peso cost of imported US feed grains and meal, which can ease Mexican feed demand pressure. Tighter Mexican policy also signals persistent inflation that may weigh on domestic consumption.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/443964/

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