Bank of Mexico held its benchmark interest rate at record low of 3 percent on December 12th despite a weak growth outlook.
A rate cut would put additional pressure on the currency and drive up inflation expectations. A drop in oil prices has already pushed the peso to a 2-1/2 year low of 14.27 per USD this week. In October, the annual inflation rate was recorded at 4.3 percent, staying above the central bank's 4 percent tolerance ceiling for the fourth consecutive month.
Mexico's economy grew just 0.5 percent quarter-on-quarter in the July-September period as expansion in services and production industries slowed.
12/5/2014 4:46:16 PM