Mexico keeps interest rate unchanged at 11%

By Ovunc Kutlu

ISTANBUL (AA) - Mexico's central bank on Thursday kept the target for the overnight interbank interest rate unchanged at 11%.

The move came in line with market expectations.

Banco de Mexico reduced its policy rate by 25 basis points on March 21 to 11 % from 11.25%.

"World economic activity is expected to continue increasing during the second quarter of 2024, although at a slower pace than in the previous quarter," Banco de Mexico’s Governing Board said in a monetary policy statement. "In most advanced economies, headline and core inflation continued decreasing."

The bank noted that the US Federal Reserve keeps its federal funds rate unchanged, while some central banks of advanced economies lowered their rates.

"International financial markets registered limited movements," said the statement. "Among key global risks are the intensification of geopolitical turmoil, the protraction of inflationary pressures, tight financial conditions, and, to a lesser extent, the challenges to financial stability."

Banco de Mexico last made hikes rated in March 2023 that pushed the interest rate to a record 11.25%