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Mexican central bank board divided on ending rate hikes, minutes show

Upon unanimously agreeing to raise rates in May, Banco de México board members showed different views on whether the hawkish cycle was close to an end, minutes show.

With board member Roberto del Cueto absent, the 4-0 vote showed half the board leaning toward continuing a rate-lifting policy until they are confident that inflation is on a path toward converging to the central bank's 3% target, while the remaining two members expressed the view that the bank was nearly done raising rates.

On May 18, the bank's board raised its benchmark rate by 25 basis points to 6.75%, the highest since March 2009. All told, Banco de México has raised interest rates by 375 basis points since the end of 2015.

Annual inflation reached 6.17% in May, the fastest pace in more than 8 years, according to a Reuters report.

Earlier this week, Banco de México raised its 2017 economic expansion forecast range to between 1.5% and 2.5%, after noting better-than-expected first-quarter GDP growth figures.