Mexico's central bank raises key interest rate

MEXICO CITY – Mexico’s central bank has raised a key interest rate by half a percentage point as it tries to bolster the peso and avoid inflation.

The Bank of Mexico said Thursday in a statement that it raised the interbank rate to 4.25 per cent from 3.75 per cent.

The Mexican peso has been sliding against the dollar in recent months. It fell further on the heels of uncertainty unleashed by Great Britain’s vote to leave the European Union.