Bank of Mexico Reference Rate Left Steady at 4.5%

September 18, 2009

As expected and as officials decided at the August policy meeting, the Mexican key central bank rate was not changed at today’s meeting.  There had previously been a reduction in each of the first seven months to 2009, totaling 375 bps.  The statement today from the central bank warns about the inflationary effect of scheduled tax increases.  Mexican consumer prices rose 5.1% in the year to August, not much less than their 5.4% increase in the prior statement year.  But a rate hike is still some distance away.  Mexican GDP fell 4.4% annualized and 10.3% on year in the second quarter.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


Comments are closed.