MEXICO CITY (Reuters) – Mexico’s central financial institution is more likely to maintain its benchmark rate of interest at 11% later this week, a majority of analysts in a Reuters ballot mentioned on Tuesday, as inflation and up to date weak spot within the native foreign money disrupt expectations. rate of interest.
Twelve of the 22 analysts surveyed supported retaining the benchmark rate of interest unchanged, whereas the opposite 10 predicted a 25 foundation level reduce.
After decreasing rates of interest for the primary time in March because the begin of the financial tightening cycle in 2021, the central financial institution’s board of administrators voted to maintain rates of interest at 11% in late June.
Since then, the Mexican shopper value index has proven upward strain on inflation. Whereas core inflation has slowed and is now hovering across the central financial institution’s 3% goal (plus or minus one share level), costs monitored by the index surged to their highest ranges in practically a 12 months within the first half of July.
The Mexican peso fell to its lowest degree in opposition to the U.S. greenback in additional than two years this week, largely as a consequence of volatility in international markets, a improvement most analysts mentioned supported a possible choice to maintain benchmark rates of interest on maintain.
The central financial institution will launch a financial coverage assertion at 1:00 pm native time (1900 GMT) on Thursday, shortly earlier than official information on July’s full-month inflation price is because of be launched.
Ballot information:
