# Bank of Mexico attempts another rate hike to support the peso

> Bank of Mexico raised its benchmark rate by another 50 basis points to 5.75 percent, its fifth hike this year. The peso rose over 1 percent on the day but reversed the next day, and the rate is now the highest since 2009.

- Date: 2016-12-19 · published 2016-12-19T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/73685-bank-of-mexico-attempts-another-rate-hike-to-support-the-peso
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Aggressive tightening to defend the peso raises financing costs for Mexican feed mills and livestock producers while the currency's weakness keeps imported feed ingredient costs high.

## Read by commodity

- USDMXN: neutral

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2016/12/19/bank-mexico-attempts-another-rate-hike-support-peso/

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