Bank of Mexico hikes interest rate a half-point to 4.75 pct

NEWYou can now listen to Fox News articles!

Mexico's central bank has raised its inter-bank interest rate a half-point to 4.75 percent, seeking to shore up a weak peso and prevent a rise in inflation.

The Bank of Mexico says in a Thursday statement that prospects for global growth continue to suggest a moderate rate of economic activity. It says growth forecasts for advanced economies have been reduced.

The peso has depreciated significantly against the U.S. dollar and shown high volatility. The bank says it has had "one of the least favorable performances among emerging economy currencies."

The bank says it foresees continued risk of greater volatility in financial markets especially if there is increased "nervousness derived from the possible consequences" of the U.S. election. It added that the implications for Mexico "could be particularly important."