Bank of Mexico Holds Benchmark Interest Rate Steady

Dow Jones
Sep 25
 

MEXICO CITY--The Bank of Mexico left its benchmark interest rate unchanged Thursday as expected, and said that future decisions will depend on how inflation and economic data evolve.

The five-member board of governors voted unanimously to keep the overnight interest rate target at 6.5%, staying on hold for a third consecutive meeting.

The central bank dropped the phrase from previous statements that it expects to keep the rate at the current level, saying instead that future decisions would depend on how inflation performs.

"The governing board will make its decisions considering the ongoing disinflation process and the expected behavior of its determinants, including the exchange rate pass-through to consumer prices, the slack conditions, and inflation expectations," the central bank said.

The bank added that it won't necessarily react automatically to further increases in U.S. interest rates. The Federal Reserve raised the federal funds rate last week, and market expectations have risen for an additional increase in October.

"Since macroeconomic conditions in Mexico are different from those in the United States, monetary policy would not have to react mechanically to the anticipated adjustments to the federal funds rate," the Bank of Mexico said.

Inflation in Mexico has picked up since the central bank's previous meeting and stood at 3.42% in mid-September, up from 3.12% in July. Core inflation eased to 3.79% from 3.95% in July. The Bank of Mexico said it still expects inflation to reach its 3% target in the fourth quarter of 2027.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10