Bank of Mexico Keeps Benchmark Rate Unchanged


Central Bank of Mexico left the overnight interbank rate unchanged at 4 percent on July 12th quoting higher risks to economic growth, recent decrease in inflation and volatility in the financial markets.

Recent data for Mexico suggest that the slowdown that has been observed since the second half of 2012 significantly worsened in the second quarter of 2013, due to lower exports and weakness in domestic spending. Although economic activity is expected to improve in the second half of the year, the downside risks have risen, according to a statement by the Bank of Mexico.

Policymakers also noticed that in May and June, annual inflation rate declined, mainly due to a drop in core inflation. Balance of risks for inflation had improved and prices are expected to lie between 3 and 4 percent in second part of the year and close to 3 percent by 2014.

Bank of Mexico Keeps Benchmark Rate Unchanged


Joana Taborda | joana.taborda@tradingeconomics.com
7/12/2013 4:27:52 PM