Bank of Mexico Interest Rate Policy Stays Put

March 18, 2012

The Bank of Mexico retained a 4.5% benchmark interest rate as expected.  A statement released March 16th concluded, “the Governing Board considers that the current stance of monetary policy is conducive to the permanent goal of inflation of 3 per cent, so it has decided to maintain unchanged the objective for the interbank interest rate to a day.”  The last rate change, up or down, was a 75-basis point cut on July 17, 2009.  Reductions in 2009 from a peak of 8.25% totaled 375 basis points.  Mexican GDP last quarter rose just 1.7% annualized ad 3.7% from the final quarter of 2010.  Consumer prices in February were 3.9% greater than a year earlier. 

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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