The Mexico central bank set its benchmark interest rate at 4.25% and says that the board was not unanimous on rate decision.
Key points
Says two members of the board voted to cut rate to 4.00%.
Says the balance of risks for trajectory of inflation is uncertain.
Says monetary policy implementation will depend on evolution factors affecting headline, core inflation and on their expectations.
Says pause provides the necessary room to confirm that the trajectory of inflation converges to the target.
Says risks for inflation, economic activity and financial markets pose major challenges for monetary policy and for the economy in general.
More to come….
USD/MXN update
USD/MXN is better offered, on the news within a bearish trend pertaining to US dollar weakness and optimism for global economic growth in 2021. The pair trades at 19.7888, -0.27% at the time of writing,
EM-FX is buoyed by the more positive mood and vaccine rollouts in Western economic fuelling risk appetite and the hunt for yield.
The MSCI index is up some 1.85% for the week at the time of writing at the highest levels since Jan 2018.
More to come…
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