Fed lift-off is Mexico’s rate rise dilemna

Financial Times – Economic theory would suggest that you do not hike interest rates when inflation is at a record low. But that is precisely what Mexico is poised to do this week. The Bank of Mexico faces the prospect of having to raise its historically low 3 percent benchmark rate at a time when inflation has been setting record lows for each of the past seven months and when GDP growth, while the envy of many at 2.6 per cent, remains far below expectations.


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