Mexico Leaves Monetary Policy on Hold


At its March 21st, 2014 meeting, Bank of Mexico left the overnight interbank rate steady at 3.5 percent for the third straight meeting, as it considers that the current policy stance remains appropriate to reach the 3 percent inflation target.

In October last year, the central bank had cut rates to a record low 3.5 percent to boost growth. But taxes from a new fiscal reform introduced in January of 2014 pushed consumer prices up and the inflation remains above the central bank’s acceptable limit of 4 percent.

Yet, policymakers noted that upward pressures to the inflation rate had eased and another spikes are unlikely. In February, consumer prices slowed to an annual 4.23 percent, after hitting a 7-month high 4.48 percent in January. 

Mexico Leaves Monetary Policy on Hold


Joana Taborda | joana.taborda@tradingeconomics.com
3/21/2014 6:45:40 PM