Mexico raises key interest rate

Mexico's central bank (BANXICO) has raised its benchmark interest rate by a quarter-point to 6.75 percent as inflation continues to outpace targets.

The Bank of Mexico says the move seeks to calm the rise in consumer prices as well as expectations for increases, gradually bringing inflation back to the target of 3 percent.

A bank statement issued Thursday says inflation hit 5.82 percent in April. It foresees inflation remaining high in the near-term but heading toward 3 percent in late 2017 and 2018. The bank notes that investment has lagged due to uncertainty in the U.S.-Mexico relations.

Also Thursday, the Trump administration formally notified the U.S. Congress that it intends to renegotiate the North American Free Trade Agreement (NAFTA) with Mexico and Canada.

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