Mexico: Banxico leaves rates unchanged
April 15, 2011
At its latest meeting on 15 April, the Central Bank (Banxico) left the policy rate unchanged at 4.50% in a move widely anticipated by the market. The policy rate has been at its record low since July 2009 and is likely to remain unchanged in the coming months. March's relatively subdued inflation reading (3.0%) prompted Banxico to maintain the same moderate tone as in previous meetings. The Bank stated that the downward trend in inflation was supported by developments in both core and non-core inflation, favoured by the sustained appreciation of the Mexican peso. Nevertheless, the Bank projects inflation to rise gradually in the month ahead but to finish below 4% by the end of the year.