Mexico's Central Bank increased its overnight rate to 4.75%

Mexico's Central Bank (Banxico) decided to hike overnight interest rates from 4.25% to 4.75% and following are the key headlines from their statement crossing the wires, via Reuters, where they stated that balance of risks to inflation has deteriorated in the short term.

Headlines (via Reuters):

• Benchmark interest rate is 4.75 pct
• Headline, core inflation will increase gradually in next few months then close year slightly above 3 pct
• Says expects headline, core inflation in 2017 to be around the bank's inflation target
• The balance of risks to growth has deteriorated again
• Balance of risks to inflation has deteriorated in the short term
• Says so far no evidence of second-round effects on prices
• Crucial to execute planned fiscal measures, which will help absorb external shocks
• Oil price, Fed, U.S. Election, which could have particularly important implications for Mexico, could cause risk of volatility in financial markets
• Says will keep extremely vigilant of factors affecting inflation, particularly the fx rate and its possible pass-through to prices
• Says will remain vigilant of relative monetary policy stance between Mexico and the United States