Mexico’s Central Bank stands pat at 3%, awaiting U.S. Fed move

The central bank said it is “closely watching” any change in Fed’s policy and its impact on the exchange rate.
The central bank said it is “closely watching” any change in Fed’s policy and its impact on the exchange rate.

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.

http://www.wsj.com/articles/mexicos-central-bank-stands-pat-awaiting-u-s-fed-move-1427401093

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