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MEXICO CITY, May 17 (Reuters) - Mexico's central bank may need to raise interest rates if global events hit the peso and inflation expectations, Deputy Central Bank Governor Javier Guzman said on Tuesday.
Guzman, according to a copy of a speech delivered in Mexico City, said that Mexico currently faces a similar situation to last December when the U.S. Federal Reserve raised borrowing costs.
Back in December, Mexico followed the Fed with a quarter-percentage point hike. Guzman said another Fed hike could cause "disorderly" movements of capital as well as risks to inflation and financial stability. (Reporting by Michael O'Boyle)