Mexico keeps interest rate steady at 11%

ISTANBUL

Mexico's central bank kept its key interest rate steady at 11%.

The move came in line with market expectations, while the Banco de Mexico on March 21 this year reduced its policy rate by 25 basis points to 11.00% from 11.25%.

"World economic activity grew in the first quarter of 2024 at a higher rate than in the previous quarter," the central bank’s Governing Board said Thursday in a statement.

"In various advanced economies, headline and core inflation continued decreasing, although, in some cases, both of them increased in their latest readings," it added. 

The Banco de Mexico last made a hike in March 2023 that pushed the interest rate to a record high of 11.25%, which marked its 15th rate increase since mid-2021.

"Annual headline inflation rose from 4.40 to 4.65% between February and April 2024, as a result of an increase in the non-core component. Core inflation, which better reflects the inflation trend, continued decreasing during the same period, from 4.64 to 4.37%," said the statement.

"Expectations for headline and core inflation for the end of 2024 adjusted upwards. Those for longer terms remained relatively stable at levels above target," it added.

ISTANBUL

Mexico's central bank kept its key interest rate steady at 11%.

The move came in line with market expectations, while the Banco de Mexico on March 21 this year reduced its policy rate by 25 basis points to 11.00% from 11.25%.

"World economic activity grew in the first quarter of 2024 at a higher rate than in the previous quarter," the central bank’s Governing Board said Thursday in a statement.

"In various advanced economies, headline and core inflation continued decreasing, although, in some cases, both of them increased in their latest readings," it added. 

The Banco de Mexico last made a hike in March 2023 that pushed the interest rate to a record high of 11.25%, which marked its 15th rate increase since mid-2021.

"Expectations for headline and core inflation for the end of 2024 adjusted upwards. Those for longer terms remained relatively stable at levels above target," it added.