Mexico Leaves Rate Unchanged

As expected by the market, Mexico’s central bank kept the monetary policy rate at 4.5%. The bank says that although manufacturing activity and exports are growing at an accelerated pace, this could be affected by a worsening economic outlook in the US. Bulltick thinks the bank will start tightening in H2 2011, with the rate ending 2011 at 5.25%. Barclays expects tightening to start in June 2011.