Banxico Holds Steady At 7%

In line with the market’s expectations, Mexico’s central bank, Banco de México (Banxico), kept the benchmark interest rate unchanged at 7%, Friday, holding it for the ninth month in a row. A recent price hike in tortillas, a Mexican food staple, and sugar is causing some analysts to revise earlier predictions of a rate cut by the Bank early this year. Some are even talking of a price rise. However, Banxico said in a statement it doesn’t believe these price rises will cross over into other prices and wages and maintained a target of inflation this year of between 3.5% and 4%.