By Juan Montes / Wall Street Journal
Mexico’s central bank stood pat on rates Thursday, as widely expected, adopting a cautious stance ahead of a potential rate increase in the U.S.
The Bank of Mexico left the overnight interest-rate target unchanged at a record low 3%. The central bank has cut rates four times in the last two years to support a sluggish economy.
But increasing expectations that the U.S. Federal Reserve will raise rates in coming months for the first time since 2008 has led Mexico’s central bank to start considering a tightening of monetary policy to support the peso.