MW: Mexico's central bank cuts rates less than expected
Mexico's central bank cut its benchmark interest rate by 25 basis points to 7.50% Friday. The move was below market expectations of a 50 basis points cut. "Mexico is being too timid and we think this is very negative for the peso," said Win Thin, senior currency strategist at Brown Brothers Harriman & Co. "The economy is collapsing, and although inflation is a bit higher than desired, the central bank is wrong to worry about price pressures." With emerging markets under pressure, the U.S. dollar is making new highs against the Mexican peso Friday and is on track to test the 15 pesos level, Thin said. The dollar was last up 0.5% at 14.78 pesos.
