Mexico Central Bank Holds Rate at 4.50%

The Banco de Mexico maintained its overnight interest rate target unchanged at 4.50%, opting for a 'wait and see' approach as inflation showed signs of moderating.  Mexico reported consumer price inflation of 3.04% in March, compared to 4.4% at the end of 2010; and within the Bank's inflation target of 3% +/- 1%.  The Bank noted "The strong decline in non-core inflation contributed in a very important way to the slowing of general inflation, although it's foreseeable that part of that drop will reverse itself in coming months,".

www.CentralBankNews.info