Mexico Holds Rates

Mexico’s central bank decided to hold its benchmark rate at 4.5%, in line with market expectations, though it left the door open for future cutting. “[The bank] remains alert to the perspectives for global economic growth and its possible implications for the Mexican economy, which in a context of great monetary lassitude in developed countries, could make a relaxing of monetary policy useful,” the bank says. Barclays calls for a 25bp cut at the next meeting. Nomura, however, sees a cut only if the European backdrop worsens significantly.