Mexico Monetary Policy Unchanged in December


At its December 6th meeting, Central Bank of Mexico decided to leave the overnight interbank rate on hold at 3.5 percent, following the previous two rate cuts.

The Bank expects the inflation rate to hover around 3.5 percent in the remainder of the year and throughout next year. In 2015, prices are expected to slow down to around 3 percent, as the effects of 2014 tax changes will fade out and oil prices will slip mainly due to changes recently passed by Congress to fix these prices from 2015. Despite some upside and downside risks to the inflation rate, policymakers consider those risks to be balanced. 

Although GDP estimates were not changed, Bank of Mexico warned of risks to growth and market volatility that could raise government borrowing costs.

Mexico Monetary Policy Unchanged in December


Joana Taborda | joana.taborda@tradingeconomics.com
12/6/2013 3:55:08 PM