# Mexican Peso Surges After Banxico Surprises with Rate Hike

> Banxico raised its overnight rate by 0.25% to 6.75%, against market expectations for a hold. The central bank expects inflation to overshoot its 3% target by end-2017 while the labor market has no slack. The peso rallied following the decision.

- Date: 2017-05-18 · published 2017-05-18T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/71219-mexican-peso-surges-after-banxico-surprises-with-rate-hike
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

The rate hike strengthens the peso, which reduces the local currency cost of imported feed ingredients for Mexican buyers. Diverging policy with the Fed supports continued peso strength against the dollar.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- finance.yahoo.com: https://finance.yahoo.com/news/mexican-peso-surges-banxico-surprises-190000402.html

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