Mexican Monetary Policy Not Changed

October 15, 2010

The Bank of Mexico, as predicted, made no change in its overnight interbank funding rate, which has been at 4.5% since 375 basis points of reduction implemented during the first seven months of 2009.  A statement from officials is fairly dovish in tone, observing that inflation has been under target for two quarters reflecting peso appreciation in part and predicting that inflation is likely to trend down in 2011.  The Mexican economy is recovering in an unbalanced way, with high expansion in exports and industrial production offset by lagging upturns in personal consumption and business investment.  The next scheduled policy meeting will be held November 26th.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.



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