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