Friday, April 15, 2011

Mexico Central Bank Holds Rate at 4.50%

The Banco de Mexico maintained its overnight interest rate target unchanged at 4.50%, opting for a 'wait and see' approach as inflation showed signs of moderating.  Mexico reported consumer price inflation of 3.04% in March, compared to 4.4% at the end of 2010; and within the Bank's inflation target of 3% +/- 1%.  The Bank noted "The strong decline in non-core inflation contributed in a very important way to the slowing of general inflation, although it's foreseeable that part of that drop will reverse itself in coming months,".


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