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LatinNews Daily - 16 November 2018

In brief: Mexico

* Mexico’s central bank (Banxico) has increased its benchmark interest rate by 25 basis points to 8%, citing concerns over rising inflationary pressures. This interest-rate increase is the third implemented by the Banxico board this year and brings the benchmark rate to its highest level in nearly ten years. In a statement, Banxico explained that the board decided to increase the interest rate due to external an internal factors, such as the volatility in international markets and the announcement of the cancellation of the project to build a new international airport for Mexico City (NAIM) by President-elect Andrés Manuel López Obrador, that have contributed to the devaluation of the peso against the US dollar and put upward pressure on domestic prices. This increase in prices was reflected in the 4.9% inflation rate registered in October, which is well above Banxico’s target rate of 3%.

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