Mexico Central Bank Raises Overnight Rate to 5.25%

The video discusses the Bank of Mexico's decision to hike interest rates, not due to domestic inflation, which is stable, but due to external pressures like the depreciation of the peso and US economic policies. The central bank aims to maintain strong macroeconomic fundamentals to navigate these challenges. The video also explores the influence of US policies, such as those under Donald Trump, on Mexico's economy and the central bank's strategy to manage these external risks.

In what ways is the Bank of Mexico trying to maintain credibility in its economic policy?

What are the two key factors that the Bank of Mexico is monitoring closely regarding interest rate hikes?