Banxico Holds Rate Putting Pressure on MXN

Mexico’s central bank held its benchmark interest rate steady on Thursday, as expected, citing risks to economic growth and potential for higher inflationary pressure due to an environment of “marked uncertainty.”

In a unanimous decision, the Bank of Mexico’s (Banxico) board members voted to hold the overnight interbank rate at 8.25 percent, its highest level since August 2008.

All 18 analysts and economists surveyed in a Reuters poll forecast that Banxico would hold the key lending rate at 8.25 percent, the level it has been at since Dec. 20.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza