Thursday, April 30, 2015

Mexico holds rate with no price pressure from demand

     Mexico's central bank maintained its benchmark target for the overnight interest rate at 3.0 percent, as expected, saying economic growth continues at a moderate pace and slack conditions in the labor market means there are no generalized price pressures from demand.
    The Bank of Mexico, which cut its rate by 50 basis points in June 2014, added that headline inflation is expected to remain close to to 3.0 percent in coming months but end the year slightly below that level with risks to this estimate from a depreciation of the peso' s exchange rate.
    On the other hand, it is possible that economic activity is more dynamic due to further declines in energy prices and telecommunications services.
    "In short, it is estimated that the balance of risks for inflation remain unchanged from the previous policy decision," the central bank said.
    Mexico's consumer price inflation rate rose slightly to 3.14 percent in March from 3.0 percent the previous month.
   
    www.CentralBankNews.info


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