Banxico Leaves Rates Unchanged On Inflation Outlook

As expected, Mexico’s central bank held its main interest rate steady for a fifth month at 7.25 % and its “corto” reserve rate at MXP79m. It based the decision on rising inflationary risks and US market volatility. “The increase in the risks to inflation raised the risk that later in the year Banxico may have to tighten if inflation rises,” says Goldman Sachs. The shop finds that an easing in the near term is unlikely, regardless of actions by the US Fed.