Economics
Mexico Holds Rate in Split Decision as Inflation Slows Down
- Policy makers voted 3-2 to hold the key interest rate at 4.25%
- Slowing November inflation seen as temporary on shopping sales
This article is for subscribers only.
Mexico’s central bank held its key interest rate for a second consecutive meeting, as policy makers wait to see if last month’s inflation slowdown consolidates before resuming their monetary easing cycle.
Banco de Mexico, led by Governor Alejandro Diaz de Leon, on Thursday voted 3-2 to maintain borrowing costs at 4.25%, despite inflation easing close to its 3% target. The hold was predicted by 19 of 23 economists surveyed by Bloomberg. The remaining four expected a quarter-point cut.