Economics
Mexico Holds Key Interest Rate Unchanged as Inflation Surges
- Central bank kept benchmark rate at 4%, the lowest since 2016
- Inflation accelerated past target ceiling in early March
This article is for subscribers only.
Mexico’s central bank unanimously voted to hold its key interest rate at its lowest in almost five years amid surging inflation, though analysts are split on whether its easing cycle is over.
Banco de Mexico, led by Governor Alejandro Diaz de Leon, kept borrowing costs at 4% on Thursday, after price increases sped beyond its target ceiling in early March. Seventeen of the 24 economists surveyed by Bloomberg predicted the hold. The remaining seven expected a quarter-point cut, with several analysts revising their reduction calls after the surprise 4.12% inflation data was posted Wednesday.