The Central Bank of Mexico decided to hold the benchmark interest rate at 3 percent on October 31st, as no inflationary pressures are anticipated.
Although inflation reached 4.22 percent in September, remaining above the central bank’s target of 3 percent plus one-point tolerance range for the third straight month due to high food prices, policymakers expect it to slow in the beginning of 2015. Yet, annual core inflation rate is still around 3 percent.
The central bank expects a moderate GDP expansion in the third quarter of 2014, with external demand giving the highest contribution.
10/31/2014 3:59:25 PM