Mexico's central bank held its policy rate steady at 3.50 percent, as expected, but said it would remain alert to any impact on inflation from the government's tax reform.
The Bank of Mexico, which has cut its target for overnight rates three times this year for a total reduction of 100 basis points, also said it would be "vigilant" to the inflationary effects of economic activity and the relative monetary stance of Mexico versus the United States in order to achieve its 3.0 percent inflation target.
Mexico's headline inflation rate eased to 3.36 percent in October from 3.39 percent in September but picked up to 3.51 percent in early November on a seasonal rise in electricity prices.
The central bank said inflation was still showing a positive trend and core inflation was near historically low levels of around 2.5 percent. But inflation expectations for the end of 2014 have risen slightly due to the potential impact of changes to taxes, but remain below 4 percent.
The central bank added that expectations of economic agents for 2015 show that any increase in inflation will be "transient, moderate and will not lead to second order effects."