Bank of Mexico

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

Mexico’s Interbank Funding Rate Left at 3.0%

January 29, 2015

The Bank of Mexico’s benchmark interest rate has been 3.0% since a 50-basis point cut last June, which was the fourth reduction totaling 150 bps between March 2013 and then.  A released statement after the first monetary policy committee meeting of 2015 reads similarly to the prior meeting’s statement, concluding The Governing Council has decided […] More

Bank of Mexico Keeps 3.0% Overnight Rate

October 31, 2014

Taking into account the above, the Governing Council has decidedto keep in 3 percent goal forthe interbank interest rate overnight, which estimated that the monetary stance is consistent with the efficient convergence of inflation to the target of 3 percent. Forward, it will remain attentive to the performance of all the determinants of inflation andexpectations […] More

Bank of Mexico: No Interest Rate Change as Expected

September 5, 2014

Mexico’s record low key central bank interest rate, which has been at 3.0% since a 50-basis point cut in June, increasingly looks like the trough of a downtrend that began from 8.25% at the end of 2008.  The rate was cut by 375 basis points during the first seven months of 2009, paused at 4.5% […] More

Bank of Mexico Retains 3.5% Overnight Lending Rate

January 31, 2014

Mexico’s central bank did not become the latest victim in an epidemic of emerging markets where central bank rates have been hiked to stem capital outflows, currency depreciation, mounting inflation worries.  To be sure, the peso has depreciated, and inflation has risen to 4.6% led by food and higher fiscal charges. But a statement from […] More