Bank of Mexico

Super Dollar at the Expense of Bonds, Commodities and Now Even Stocks

November 18, 2016

The dollar hit overnight highs of JPY 110.94 and 1.0581 per euro. The dollar climbed 0.9% against the loonie, 0.4% relative to the Australian currency, and 0.2% versus sterling. The dollar advanced 0.4% against the Mexican peso in spite of another 50-basis point increase in the Bank of Mexico’s overnight interest rate to 5.25%. That rate […] More

Bank of Mexico Raises Interest Rates for Third Time in 2016

September 30, 2016

As a U.S. presidential candidate with hostile intentions regarding relations with Mexico, Donald Trump is already influencing Mexican monetary policy the Bank of Mexico increased its policy interest rate to 4.75% from 4.25%. This was the third 50-basis point central bank rate hike since February and completely reverses easing undertaken between March 2013 and October […] More

Mexican Central Bank Interest Rate Left at 3.75%

May 5, 2016

Officials are watching the peso very carefully.  Excessive depreciation could lift expected inflation and thus jeopardize the 3% inflation target.  When the peso was dropping sharply in February, the key interest rate was hiked 50 basis points on the 17th at an emergency meeting arranged just 13 days after monetary officials had decided not to […] More

Bank of Mexico

March 18, 2016

Mexico’s policy interest rate was left at 3.75%.  An unexpected 50-basis point increase in February has lent the peso a more stable tone.  A released statement from the Bank of Mexico says that future rate decisions will hinge on developments affecting actual inflation, expected inflation, Mexico’s output gap and Fed policy.  The FOMC’s decision not […] More

Bank of Mexico

February 4, 2016

Mexico’s overnight interest rate had been raised on December 18 for the first time since before the Great Recession. The hike was 25 basis points in size to 3.25%.  At the end of 2008, the key overnight central bank interest rate had been at 8.25%.  By July 2009 and seven reductions later, it was at […] More

A Trio of Latin American Central Bank Rate Hikes

December 22, 2015

Monetary officials in Chile, Colombia and Mexico wasted little time last week matching the FOMC’s 25-basis point interest rate hike. The Central Bank of Chile policy rate was lifted to 3.5%.  This was the second Chilean tightening of the cycle following one in mid-October.  Previously, 225 basis points of rate cuts were spaced out between […] More

Bank of Mexico Interest Rate Kept at Record Low of 3.0%

September 21, 2015

From a pre-Great Recession high of 8.25%, Mexico’s central bank interest rate was cut seven times by 375 basis points in all between January 2009 and July 2009.  Four more cuts of 50 basis points in March 2013, 25 bps in September 2013, 25 bps in October 2013 and 50 basis points in October 2014 […] More

Bank of Mexico

July 31, 2015

Mexico’s main central bank interest rate has been kept at 3.0% after another policy meeting.  Such was cut from 8.25% to 4.25% in the first seven months of 2009 and the rest of the way to the current level between March 2013 and June 2014.  Inflation has fallen to a 45-year low somewhat below the […] More

Bank of Mexico Keeps 3.0% Overnight Lending Rate

April 30, 2015

From a peak of 8.25%, Mexico’s key interest rate earlier had been cut by 375 basis points during the first seven months of 2009 and by another 150 bps between March 2013 and June 2014.  There haven’t been any changes since mid-2014, and a statement released after today’s policy meeting defends the current stance because […] More

Bank of Mexico

March 26, 2015

Monetary easing in Mexico since 2009 has happened in two waves.  In each of the first seven months of that year, there was a rate cut, the total of which added up to 375 basis points, cutting the main interest rate to 4.5% from 8.25%.  The second wave of easing began with a 50-basis point […] More