Why Mexico Broke With Fed and Raised Rates After Brexit

The video discusses the central bank's decision to control inflation expectations and maintain financial stability amid divided market expectations. Despite acknowledging low growth and inflation in Mexico, the bank aims to manage currency depreciation without targeting exchange rates. The Mexican peso's poor performance is highlighted, and the central bank warns speculators against shorting the peso, expecting some position adjustments.

What actions is the central bank taking to address the depreciation of the peso?

What implications does the accumulation of short positions in the Mexican peso have for speculators?