Mexico Leaves Key Rate at Record Low on Economic Outlook

Mexico’s central bank left its key interest rate unchanged at a record low after last month’s surprise cut, saying the economy showed signs of picking up in the second quarter without pressuring inflation.

Banco de Mexico’s board, led by Governor Agustin Carstens, left the overnight rate at 3 percent, a move forecast by all 23 economists surveyed by Bloomberg. The board reduced borrowing costs by half a point in June, surprising all the analysts polled by Bloomberg, in an effort to compensate for weak expansion in Latin America’s second-largest economy.