Mexico’s central bank raised borrowing costs for a seventh straight time as the country’s annual inflation rate more than doubled since September. The hike was expected by all but one of 27 economists and the peso (which rallied into the decision) is extending gains.

Some more details:

• Banxico Removes Reference to Future Measures From Statement End
• Global Growth Outlook Faces Downside Risks
• Achieving Anchoring of Mid-Long-Term CPI Expectation
• Policy Decisions to Keep Affecting CPI in Coming Qtrs
• CPI to Reach Target Around 4Q 2018

After a brief pause, the peso has rallied since the hike...

As Bloomberg reports, the most hawkish central bank in the Group of 20 nations extended its hiking cycle amid price shocks on items from gasoline to farm products and after the U.S. Federal Reserve raised interest rates. Carstens has said inflation will dip substantially in the second half of 2017 and the peso’s strength will help it reach the target next year, leading some economists to forecast that Mexico’s rate hikes are drawing to a close.

"With still increasing inflation, Banxico is likely to keep its guard up," Carlos Capistran, chief Mexico economist at Bank of America Corp., said before the rate decision, which he forecast would increase borrowing costs. "But we expect this movement to end the hiking cycle."