Bank of Mexico: Policy Unchanged
April 28, 2012
Mexican monetary policy has been in pause mode since July 2009. That’s when a 375-basis point reduction cycle of the overnight lending rate target reached a level of 4.5%. A statement after Friday’s meeting of the policy committee retained a downside possibility for the rate benchmark sometime in the future, contingent upon lessening world financial market strains and lessening peso vulnerability. The statement notes that there continues to be some slack in productive resources and that the current monetary stance will promote achievement of the 3% inflation target. A future renewed rate cut is also in the cards because monetary policies in other countries remains very loose. Most analysts were not surprised by the decision of officials to remain in wait and see mode.
The next scheduled policy statement will be made on June 8.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
ShareThis
