MEXICO CITY – Mexico's central bank has raised its benchmark interest rate by a quarter-point to 6.75 percent as inflation continues to outpace targets.
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The Bank of Mexico says the move seeks to calm the rise in consumer prices as well as expectations for increases, gradually bringing inflation back to the target of 3 percent.
A bank statement issued Thursday says inflation hit 5.82 percent in April. It foresees inflation remaining high in the near-term but heading toward 3 percent in late 2017 and 2018.
The bank notes that investment has lagged due to uncertainty in the U.S.-Mexico relationship.
Also Thursday, the Trump administration formally notified the U.S. Congress that it intends to renegotiate the North American Free Trade Agreement with Mexico and Canada.