Bank of Mexico

November 10, 2017

In ten moves from December 2015 to June of this year, Mexico’s one-day interbank interest rate was raised from a low of 3.0% to the current 7.0% at which by unanimous vote this week it will remain. A statement released after the latest review observes that inflation is running a bit more than twice the medium-term target of 3.0% and that Mexico’s outlook is fraught with continuing uncertainties like the uncertain fate of NAFTA and President Trump’s trade policy threats. Although growth risks are skewed to the downside, officials conclude that they have no alternative but to remain “vigilant to ensure that a prudent monetary stance is maintained.” Such is needed to “anchoring medium-and long-term inflation expectations and achieving convergence of this to the target” of 3.0% by the end of 2018.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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