Bank of Mexico

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

No Rate Change from the Bank of Mexico

December 6, 2013

After overnight lending rate cuts this year of 50 basis points in March 25 bps in September and, most recently, 25 bps to 3.0% on October 25, Bank of Mexico policymakers seem satisfied with the status quo and likely to remain so for another year of more.  That’s the implication of the latest interest rate […] More

Bank of Mexico Cut Interest Rate Again

October 25, 2013

The central bank rate was cut by 25 basis points to 3.5%.  This action was expected and follows two earlier reductions this year of 50 basis points in March and 25 bps at the prior meeting in early September.  The cut in March was the first change since seven reductions totaling 375 basis points dosed […] More

Unexpected Mexican Interest Rate Cut

September 8, 2013

The Bank of Mexico’s benchmark interest rate was cut to 3.75% from 4.0%, a level that had prevailed for the prior half-year.  A 50-basis point cut on March 8 had been the first reduction since July 2009.  Officials are gambling that this easing will not expose the peso to excessive selling pressure.  A statement from […] More

Bank of Mexico: No Further Rate Cut Now

June 7, 2013

After holding the Mexican central bank interest rate at 4.0%, monetary officials released a statement predicting a convergence of headline and core inflation on the 3.0% target in the medium term.  Officials blamed the higher-than-3% current headline CPI on temporary factors and reiterated that growth had slowed significantly this year.  Exports and domestic demand have […] More

Mexico and Colombia: Central Bank Rates Left Unchanged

April 26, 2013

It’s not just the wealthier nations that are experiencing slower growth.  Mexico and Colombia are two Latin American economies that are growing below potential. Bank of Mexico officials had implemented a 50-basis point cut of its key interest rate in July.  That was the first reduction since July 2009.  There was not a follow-up move […] More

Bank of Mexico’s Overnight Lending Rate Left at 4.5%

January 18, 2013

By central banking standards, Mexican monetary policy has been uncharacteristically steady for the past 3-1/2 years.  Over the first seven months of 2009, the Bank of Mexico’s reference interest rate was lowered by a total of 375 basis points from 8.25% to 4.50%, but the last of those cuts, a 25-bp reduction in July, was […] More