MNI BRIEF: Banxico Holds Rate At 11.25%, To Assess Cuts

Mexico's central bank decided unanimously to maintain its overnight interbank interest rate at 11.25% on Thursday for the seventh straight meeting, but dropped an earlier commitment to keeping policy steady for "some time" and instead stated policymakers will assess the possibility of reducing borrowing costs in coming meetings.

"In the next monetary policy meetings, it will assess, depending on available information, the possibility of adjusting the reference rate. It will take into account the progress in the inflation outlook and the challenges that prevail," Banxico said in its post-meetingstatement. (See MNI INTERVIEW: Banxico Cuts Coming Even If Premature-Ex-Deputy)

The board will also consider "the incidence of both the restrictive policy stance that has been maintained and that prevailing in the future on inflation throughout the horizon in which monetary policy operates", adding that the policy rate must remain consistent at all times to reach the 3% of inflation target. (See MNI INTERVIEW: Banxico Should Be Cautious On Rate Cuts-Guzman)