Mexico: Banxico leaves rates unchanged
November 26, 2010
At its latest policy meeting on 26 November, the Central Bank (Banxico) left the policy rate unchanged at 4.50%. The decision was widely expected by the market and represented the 16th consecutive month of unchanged interest rates. Monetary authorities confirmed their expectations that inflation would rise in the final months of the year, before trending downwards next year. Moreover, Banxico acknowledged that the pace of expansion of aggregate demand was showing signs of a slight moderation, driven in particular by weaker external demand. Furthermore, the Bank stated that the recent spikes in capital inflows, which were boosted by loose monetary policies in developed economies, were finally showing signs of slowing in the final days of November.