The central bank of Mexico left the overnight rate unchanged at 4.0% in today’s monetary policy statement, in line with expectations. The wording of the closing paragraph also met our expectations, with the central bank largely repeating the wording from the 7 June statement. Specifically, the bank wrote that the board will remain vigilant that changes in relative prices do not have second round effects on inflation, and that it will watch the implications on inflation from incoming economic activity data and from Mexico’s own monetary policy stance vis-à-vis other countries.
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Credit Suisse