Mexico central bank raises interest rate to 10.50% as expected

The Bank of Mexico raised its key interest rate by an expected 50 basis points to a record 10.50% on Thursday as the bank's board tempers its monetary tightening pace amid a slowdown in inflation.

The split decision follows four consecutive 75-basis-point hikes and comes after the U.S. Federal Reserve raised its key interest rate by 50 basis points Wednesday after four consecutive hikes of three-quarters of a percentage point.