Mexico central bank keeps rates unchanged at 7%

Felipe Erazo FXStreet

In a unanimous decision, Mexican central bank (Banxico) has decided to keep rates unchanged at 7%.

Key quotes (via Reuters):

Going ahead the board will be vigilant of Fx changes, output gap
Will also be vigilant of relative monopolistic stance with US as well as impact of quake on prices
says balance of risks to growth have deteriorated particularly because of perception that adverse scenarios in the US - Mexico ties could materialize
balance of risks to inflation may have deteriorated
says recent earthquakes could cause supply problems and price rises in some products, these would be temporary
past hikes have begun to have impact on inflation
In coming months general inflation seems to have reached its high point, without taking into account quakes
effects of quake on economy and inflation be temporary and moderate

Author

Felipe Erazo

FXStreet

Born in Colombia, Felipe Erazo is the American Session Manager at FXStreet. He has been studying journalism with a degree in social communication at the Universidad de Chile.

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