IPC Jumps as Central Bank Suggests Rate Cut: Mexico City Mover
The IPC index of 35 companies rose 1 percent to 39,521.24 at the close of trading, setting a record high and boosting the weekly rally to 3.1 percent. MSCI Inc.’s Latin America (MXLA) index rose 0.5 percent.
“There’s been a significant change in the market’s view” of central bank policy, said Luis Rodriguez, director of research at Casa de Bolsa Finamex SAB in Guadalajara, Mexico.
Most of the central bank board’s members said a rate reduction may be warranted to bolster the economy should inflation remain tame, according to the minutes from the March 16 meeting in which they held benchmark borrowing costs at a record low 4.5 percent.
Alberto Ramos, an economist at Goldman Sachs Group Inc., wrote in a note to clients that the minutes were “more dovish than expected.”
Kimberly-Clark de Mexico SAB, Mexico’s biggest consumer products company, led gains on the day, advancing 6.4 percent. Fomento Economico Mexicano SAB (FEMSAUBD), the company that controls Latin America’s largest Coca-Cola bottler, soared 5.2 percent.
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