Bank of Mexico

Mexico Joins Group of Central Banks to Cut Central Bank Interest Rate

August 16, 2019

President Trump’s hostile handling of America’s southern neighbor since mid-2015 had created a vicious cycle of  peso depreciation and accelerating domestic inflation in Canada, forcing Mexican monetary authorities to repeatedly jack up their overnight interbank interest rate target from 3.0% prior to the first move in mid-December 2015 to 8.25% after the last move in […] More

More Weak Data around the Globe

August 16, 2019

New Zealand’s manufacturing purchasing managers index fell below the neutral threshold of “50” for the first time since September 2012, with a reading of 48.2 in July after 51.1 in June. U.S. housing starts dropped 4.0% in July to a 5-month low of 1,191 million units. This was only 0.6% greater than in July 2018. […] More

Trade Showdown and Many Data Releases

June 28, 2019

The Group of Twenty annual summit kicked off in Osaka and looms as a crossroads in the U.S.-Sino dispute over trade. Either the conflict gets diffused here, or retaliatory tariffs are likely to escalate sharply. Being the last business day of the second quarter and June, today’s data menu was plentiful. The dollar eased overnight […] More

U.S.-Sino Trade Tensions and U.K. Tory-Labor Brexit Talks Take a Turn for the Worse

May 17, 2019

Chinese officials poured cold water on hopes that trade tensions with the United States might de-escalate. In reaction, China’s stock market tumbled 2.5%, and the yuan fell 0.4% against the dollar. Share prices also dropped 1.5% in Hong Kong, 1.3% in India, 1.2% in Indonesia, 0.9% in Taiwan, 0.6% in South Korea and 0.8% in […] More

Bank of Mexico Tightens for Fourth Time in 2018

December 20, 2018

A 25-basis point increase in Mexico’s overnight interbank rate to 8.25% announced today  brings the cumulative increase this year to a full percentage point, which matches what the Fed did this year and keeps the premium relative to the federal funds target at a very wide six percentage points. Aside from earlier hikes this year […] More

Bank of Mexico Tightens to Contain Inflation

November 16, 2018

The Bank of Mexico raised the overnight interbank rate by another 25 basis points, citing significant peso depreciation since the last policy review, concerns regarding the incoming administration’s policy intentions, above target inflation, indications of higher expected inflation, recent downgrades by some ratings agencies of Mexico’s debt rating outlook, and likely future increases in global […] More

Mixed Dollar

November 16, 2018

The exit of British officials protesting the Brexit deal terms did not snowball, and Prime Minister May remains in power for now. Sterling rebounded 0.3% against the dollar and euro. The Ftse has lost 0.3%, and the 10-year British gilt yield climbed four basis points. The dollar also fell 0.3% against the yen and 0.1% […] More

Bank of Mexico Leaves Overnight Interbank Rate at 7.75%

October 4, 2018

Mexican CPI inflation of 4.9% as of August exceeded the 3% target and even the target range ceiling of 4%. Expected inflation is also running above the comfort zone in Mexico, but growth is only around 2%. The central bank interest rate was increased by 250 basis points during 2016, 150 basis points during 2017, […] More

Bank of Mexico Decides Not to Raise Interest Rate after Latest Policy Review

August 2, 2018

The Governing Board kept its overnight interbank interest rate at 7.75% but observed in a released statement that “since the last monetary policy decision, the balance of risks to the forecasted trajectory of inflation remains biased upwards, in an environment of high uncertainty.” There had been two 25-basis point hikes this year — in February […] More

Bank of Mexico

May 17, 2018

The Governing Board of the Bank of Mexico agreed unanimously not to raise the 7.5% overnight interbank rate further at this time. Higher inflation driven by peso depreciation driven by hostile U.S. policies toward Mexico has compelled the central bank authorities to adopt a prudent monetary policy. Starting with a 25-basis point rate hike in […] More

css.php