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LatinNews Daily - 25 June 2021

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In brief: Mexico's central bank raises interest rates

* Mexico’s central bank (Banxico) has raised its benchmark interest rate by 25 basis points to 4.25%. Noting signs of economic recovery in March and “certain moderation” in April, Banxico said its governing board voted to increase the interest rate to avoid major fluctuations in the expected inflation rate and promote convergence towards the 3% target after Mexico’s national inflation rate reached 6.02% in the first fortnight of June. The Banxico statement said the central bank was keen to avoid further fluctuations which could prevent Mexico from reaching its target inflation rate. Banxico now expects inflation to reach the 3% target in Q3 2022, however, this estimate could be affected by internal and external inflationary pressures among other changes in the national economy.