Mexico raises interest rates, cites Trump as risk

Published September 30, 2016

In this Sunday, Sept. 25, 2016 photo, a family of three ride their bicycles past a piñata depicting U.S. Republican presidential nominee Donald Trump propped against a cardboard mural wall with a message in Spanish that reads; "United against Trump" at the Angel of Independence monument in Mexico City. The head of Mexico’s central bank told the Radio Formula network Friday, Sept. 30, 2016, that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.” (AP Photo/Marco Ugarte) (The Associated Press)

The head of Mexico's central bank says U.S. Republican candidate Donald Trump represents a "hurricane" sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency "would be a hurricane and a particularly intense one if he fulfills 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 percent to 4.75 percent Thursday, citing "nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant."

Mexico's peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike.

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