Could Maxico tighten more than expected,

Mexico’s central bank may hike interest rates more than Wall Street expects this year. Credit Suisse forecasts a full percentage-point increase in the overnight rate to 4.0 percent from 3.0 percent, while market consensus forecasts the rate will sit at 3.6 percent by year-end. The reasons for the more hawkish call? The peso has lost 12 percent since September, and that could endanger the bank’s 3 percent inflation target, especially after it missed targets in 2014. Conversely, higher rates could help show the bank’s resolve to strengthen the peso and fight inflation. The bank cut rates by 1.5 points in 2013-14, giving it space to tighten monetary policy.