Banxico Keeps Rates Steady

Mexico’s central bank kept its rate steady at 4.5%, in-line with consensus estimates. Citi cites improving outlook for inflation risk and economic slackness as reasons for the bank not hiking rates. Citi says it expects the first rate hike to take place in October. Credit Suisse, meanwhile, says it believes Mexico will not increase its rate until December, while Barclays expects that it will wait until January 2012.