No Change in Mexican Central Bank Rate
August 26, 2011
As expected, policymakers at the Bank of Mexico kept their benchmark interest rate at 4.5%. A released statement noted that
- The external environment deteriorated significantly in recent weeks;
- Productive activity in Mexico continues to trend positively, but its growth rate has lost some dynamism. Some components of domestic expenditure have slowed moderately, while exports remain robust. The prospects for growth have been revised downwards, largely in response to the slowdown in the economy of United States.
- This situation confirms that the output gap will close more slowly than expected.
- Annual general inflation and the underlying core pace have maintained a favorable evolution.
- Turbulent world financial market conditions and foreign exchange volatility could keep food prices elevated.
Following 375 basis points of rate reduction in the Great Recession, the key rate has been steady at 4.5% since July 2009.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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