Bank of Mexico

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

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