Mexico raises interest rates, cites Trump as risk
MEXICO CITY, Mexico (AP) — The head of Mexico’s central bank says US Republican candidate Donald Trump represents a “hurricane”-sized threat to Mexico.
Banco de Mexico Governor Agustin Carstens told the Radio Formula network yesterday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfils what he has been saying in his campaign”.
Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.
Mexico’s central bank raised its prime lending rate by half a per cent to 4.75 per cent Thursday, citing “nervousness surrounding the possible consequences of the US elections, whose implications for Mexico could be particularly significant.”
Mexico’s peso had lost about six per cent in value against the dollar since mid-August. It recovered slightly after the rate hike.
