In a widely expected decision, the Central Bank of Mexico (Banxico) left its policy rate unchanged at 8.25%.
Key highlights from the policy statement (via Reuters)
- Board was unanimous on rate decision.
- The balance of risks for growth continues to be tilted downwards.
- Balance of risks for inflation has upward bias.
- Describes environment of marked uncertainty for inflation.
- Will pay special attention to uncertainty, pass-through of exchange rate on prices, relative monetary policy between U.S. Fed and Mexico.
- Will take necessary actions so that inflation converges towards its target.
- Medium and long term macro risks mean it is particularly important that government meets the fiscal targets set in 2019 budget.
- Growth could continue decelerating at beginning of 2019.
- Transitory factors including distribution of gasoline and blockages of transport routes could affect growth in first quarter.