Mexico
News

Mexican cenbank leaves key rate intact

Bnamericas Published: Thursday, February 04, 2016
Mexican cenbank leaves key rate intact

The Mexican central bank (Banxico) announced on Thursday it is leaving the key interest rate intact at 3.25%.

The decision was widely expected by analysts.

Banxico had raised the benchmark rate by 25 basis points in December for the first time since 2008 in response to the US Fed's hike the day before.

Mexican central bankers have said they will keep a close eye on monetary policy in the US to avoid capital outflows and ensure financial stability.

There was no strong reason for a rate hike this month considering a domestic scenario of low inflation and weak economic growth, and the fact that the Fed did not move its rate target last month.

Mexico's inflation last year was an all-time low of 2.13% while the economy grew below potential at an estimated 2.5%.

In the statement announcing the latest rate decision, the Banxico board said that short and long-term inflation expectations are more or less in line with its 3% target.

The board said it will also continue to monitor the risk of so called imported inflation from the depreciation of the Mexican peso.

Picture: Central bank governor Agustín Carsten.

UPCOMING BNAMERICAS EVENTS

4TH Mexico Electric Power Summit

Click here to see the agenda and speakers

5TH Mexico Infrastructure Summit

Click here to see the agenda and speakers

4TH Mexico Oil & Gas Summit

Click here to see the agenda and speakers

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

  • Project: Cóndor
  • Current stage: Blurred
  • Updated: 3 hours ago
  • Project: Los Ricos
  • Current stage: Blurred
  • Updated: 4 hours ago

Other companies in: Political Risk & Macro

Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.

  • Company: Business Finland Oy  (Business Finland)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...