The Mexican central bank has raised its basic interest rate by a quarter point to 8 percent in a bid to rein in rising inflation, local media reported Sunday.
In a statement, the bank said the move was taken as a result of faster-than-expected pace of inflation and would not affect the momentum of the country's economic growth.
The flagging U.S. economy has not yet dealt a severe blow to Mexico's economy, but Mexico registered a lower-than-expected gross domestic growth rate of 3.7 percent in the second quarter of this year, indicating that the economy is facing downside risks in the medium and short terms, the bank said.
Inflation rose 5.26 percent year-on-year in June due to surging prices of oil and food on the international market, according to the latest figures released by the bank.
The bank said it is due to revise up its inflation forecast for2008 by one percentage point to 4 percent at the end of July.
Source:Xinhua
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