Mexico Leaves Rates Unchanged

The central bank of Mexico has kept rates unchanged at 4.50%, in line with market expectations, citing continued growth in industrial production and exports, although there has been some weakness on the demand front. Morgan Stanley believes the rate will stay at 4.50% until the end of the year. “We suspect the authorities would have to see further tightening in monetary conditions – via an appreciation of the exchange rate – before they consider altering their stance,” the shop says. Barclays, meanwhile, expects the rate to stay at 4.50% at least until Q311.