Mexican Reference Rate Reduced to 4.5% from 4.75%

July 17, 2009

The Bank of Mexico implemented a seventh consecutive rate reduction and, as expected, reduced the size of the cut to 25 basis points from 50 bps in June, 75 bps each in May, April and March, 25 bps in February and 50 bps in January.  In all, the seven reductions add up to 375 basis points.  In a statement released by officials, more optimism about second-quarter growth was tempered by continuing worries about U.S. demand prospects.  CPI inflation of 5.7% now exceeds the reference interest rates.

Copyright Larry Greenberg 2009.

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