Free Trial

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

(MNI) BRASILIA

Mexican policymakers drop reference to keeping rates steady 'for some time.'

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)

Keep reading...Show less
166 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

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)

Keep reading...Show less