Bank of Mexico Cuts Rate to 3.5%


Central Bank of Mexico decided to cut the overnight interbank rate for the second straight month by 25 bps to 3.5 percent on October 25th, amid weak economic growth.

Recent data for Mexico suggest that the economy slightly recovered in the third quarter of 2013, as some of the adverse shocks have apparently started to fade out. The Central Bank also said it expects the recovery of the economy in 2013 and 2014, although at a slower pace than previously anticipated. 

Regarding the inflation rate, Bank of Mexico does not expect high pressures coming from the demand side and considers the current policy stance to be consistent with the 3 percent target, thus no further interest rate cuts are advisable. 

Bank of Mexico Cuts Rate to 3.5%


Joana Taborda | joana.taborda@tradingeconomics.com
10/25/2013 4:13:28 PM