As expected, the Central Bank of Mexico (BANXICO) held interest rates at 4.5% this afternoon. Speculation is mounting that rising food prices could trigger a rate hike over the coming months but the bigger (and often overlooked point) is that last January’s increase in sales tax will now begin to fall out of the annual inflation rate. Accordingly, we still expect rates to remain on hold until at least mid-2012.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.