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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.