# Mexico's Carstens prefers prudence on hikes amid uncertainty

> Mexico raised its benchmark interest rate by 50 basis points to 5.25 percent last month after Trump's election victory drove the peso to a record low. Central bank governor Carstens signaled a preference for prudence on further hikes amid uncertainty.

- Date: 2016-12-03 · published 2016-12-03T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/73678-mexico-s-carstens-prefers-prudence-on-hikes-amid-uncertainty
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Higher Mexican rates aim to defend the peso, which affects the cost of imported feed ingredients for Mexican livestock and poultry producers; the policy stance signals a slower tightening path.

## Read by commodity

- USDMXN: neutral

## Sources

- reuters.com: https://www.reuters.com/article/mexico-economy-carstens-idUSE1N1D802L/?feedName=usDollarRpt&feedType=RSS

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