MNI STATE OF PLAY: Bank of Mexico Holds Rates Steady at 4%

The Bank of Mexico held interest rates steady at 4% Thursday as rising inflation and financial market pressures made policy makers reticent to reduce borrowing costs further despite a weak economic backdrop.

"Since the last monetary policy decision, the Mexican peso has depreciated and medium- and long-term interest rates have risen," the Bank of Mexico said in its policy statement. The decision was unanimous, Banxico said.

The central bank met against a backdrop of growing volatility in emerging markets as turmoil in places like Turkey has knock-on effects, including putting downward pressure on the Mexican peso.

Mexico's consumer price inflation rate rose to 4.12% in the first half of March, the government reported Wednesday. Banxico targets an inflation rate of 3% with a tolerance band of plus or minus one percentage point.