Bank of Mexico Policy Rate Unchanged

November 26, 2010

The overnight interbank funding rate will remain at 4.5%, the level since July 2009.  Rate cuts totaling 375 basis points were implemented in each of the first seven months of last year.  A new statement released today was less dovish than the one following the policy meeting in mid-October, noting that the output gap has been shrinking and that inflation has risen lately.  Such was 3.7% higher in September than a year earlier.  That said, officials do not seem anxious to lift rates just yet.  Export demand is somewhat less dynamic, and overall growth has moderated.  Core inflation remains contained.

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



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