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Mexico holds key rate as inflation forecast to slow

Monday, July 23, 2012

Mexico’s central bank left its key interest rate unchanged at a record low, stretching the period since its last move to three years, on forecasts the inflation rate will drop back into the target range by year end.

The bank’s board, led by Governor Agustin Carstens, kept the overnight lending rate at 4.5 percent today, matching the forecast of all 21 economists surveyed by Bloomberg. The bank hasn’t changed the rate since before Carstens took the helm in January 2010 and will stay on hold until the third quarter of next year, according to a separate survey by Bloomberg.

Source: Bloomberg