Bank of Mexico

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

Bank of Mexico Keeps Policy Rate at 7.5%

April 12, 2018

Mexican monetary isĀ  focused on on strengthening the anchoring of medium- and long-term inflation expectations and achieving the convergence of actual inflation on the 3.0% target. In response to the steep depreciation of the peso as candidate and then U.S. President Trump espoused an anti-Mexican agenda both in regard immigration and trade policy. The peso’s […] More

Bank of Mexico Tightens

February 8, 2018

Mexico’s overnight interbank facility rate was lifted again, this time by 25 basis points to 7.5%. Today’s action is the twelfth increase dating back to December 2015, prior to which the policy rate had been at 3.0%. This progressive restraint is meant to anchor medium-term and long-term inflation expectations in the face of unforeseen shocks […] More

Another Rate Hike at the Bank of Mexico

December 15, 2017

Citing higher-than-desired inflation, the Bank of Mexico under a new president has raised its one-day interbank rate to 7.25% from 7.0%. This is the fourth increase of 25 bps in size this year, following ones in March, May and June. A prior 50 basis point hike last February culminated a series of six half-percentage point […] More

Bank of Mexico

November 10, 2017

In ten moves from December 2015 to June of this year, Mexico’s one-day interbank interest rate was raised from a low of 3.0% to the current 7.0% at which by unanimous vote this week it will remain. A statement released after the latest review observes that inflation is running a bit more than twice the […] More

Bank of Mexico Votes Unanimously to Keep 7.0% Interest Rate

August 10, 2017

The Trump-driven plunge of the peso in 2016 lifted Mexican inflation and elicited six 50-basis point interest rate hikes and four increases of 25 basis points starting in December 2015 and most recently in June of this year. The final three increases were by 25 basis points. according to a released statement from the Bank […] More

Bank of Mexico

June 22, 2017

Mexico’s key central bank interest rate was raised for the seventh time since September and the tenth time since December 2015. Over the entire year and a half span, the rate has been lifted from 3.0%, the level between October 2014 and December 2015, to 7.0%. Today’s increase had been expected. CPI inflation of 6.3% […] More