Mexico’s central bank leaves policy rate unchanged at 7.5%
By unanimous vote, the Governing Board of the Bank of Mexico on Thursday maintained its benchmark interest rate unchanged, currently at 7.5%, despite the uncertainty generated by the renegotiation of the NAFTA and the electoral process.
In this sense, the central institute noted in its monetary policy statement that “the general inflation expectations for the closing of 2018 decreased from 4.09% to 3.98% from March to April, while those of medium and long terms remained around 3.5 %.
The rate rose in February for the last time to its current level, the highest in more than nine years as a measure to contain inflationary pressures.
Although until April the year-on-year inflation slowed to 4.55%, more than expected and its lowest level in 16 months, the figure is still far from the permanent target of 3% set by Banxico.
After reaching 17-year highs in December, year-on-year inflation began to slow down in January, helped mainly by a more moderate increase in gasoline prices.