UPDATE 4-Mexico hikes key rate, peso surges after surprise FX intervention

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UPDATE 4-Mexico hikes key rate, peso surges after surprise FX intervention

UPDATE 4-Mexico hikes key rate, peso surges after surprise FX intervention

(Adds fresh quote, details on auctions, reserves) By Miguel Gutierrez and Michael O'Boyle MEXICO CITY, Feb 17 (Reuters) - Mexico's central bank on Wednesday unexpectedly raised its benchmark interest rate by 50 basis points to 3.75 percent, sparking a rally in the long-battered peso currency, while the government vowed to cut spending. Mexico's central bank also intervened directly in the foreign exchange market to sell dollars as part of a major policy shift to support the peso,

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