Banco de Mexico held benchmark rate at 4.5%

 Banco de Mexico’s 5-member board, led by Governor Agustin Carstens, held its benchmark interest rate at 4.5% for the 14th time


From the google translated monetary policy release, the bank foresees little inflationary pressure in the short to medium term. Also the bank is monitoring the economic recovery in Mexico (and in the US, with the exceedingly loose monetary policy settings) and continues to work toward a target inflation rate of 3%

    It is estimated that inflation in the coming quarters will remain below the lower limit of the forecast said, though is expected to show an increase towards the end of the year, to resume its downward trend in 2011.


    Whereas, the Board of Governors has decided to maintain unchanged the target rate for overnight interbank interest. The Board will continue to monitor the behavior of inflation expectations, output gap, public prices, prices of grains and other determinants of inflation pressures could warn about unexpected and widespread on prices. This in order that, in that event, the Central Bank set the monetary policy stance to achieve the inflation target of 3 percent by the end of 2011.

See announcement: http://www.banxico.org.mx/informacion-para-la-prensa/comunicados/politica-monetaria/boletines/%7B7B6B50F4-D438-E8A0-01AE-A8743D278077%7D.pdf