Mubasher: The Central Bank of Mexico decided on Thursday to raise its main interest rate in order to combat the depreciation of the local currency, as inflation is decreasing.

The monetary policy statement revealed a 25 basis points (0.25%) increase in the main rate to 7.75%.

The United States Federal Reserve recently increased its rates by the same percentage, as it continuities to target inflation rate reaching 2%.

Last month, inflation in Mexico went down to 4.51% from 4.55% in April.

The Mexican Peso lost 2.7% against the USD year-to-date, as concerns regarding the future of the North American Free Trade Agreement (NAFTA) continues.