The Bank of Mexico, maintaining its key interest rate at 11.25%, emphasizes a cautious approach towards achieving its 3% inflation target amidst complex economic conditions.
The Bank of Mexico maintained its benchmark interest rate at 11.25% on Thursday, in line with analysts' forecasts, underscoring that the inflationary outlook remains "very complex" and suggesting the rate could hold steady for a while. The unanimous decision by the central bank's five-member board is the third consecutive rate hold since Banxico, as the Bank of Mexico is known, halted a two-year hiking cycle in May amid easing inflation. While falling inflation has elicited rate cuts elsewhere in Latin America, Banxico has taken a more cautious approach as inflation in Latin America's second largest economy remains above the bank's official target of 3%, plus or minus a percentage point.