
Mexico's central bank lowered its benchmark lending rate by 50 basis points Friday to 4.0 percent in the first such adjustment in nearly four years. It did so because inflation is under control and the bank wants to adjust to a scenario of lower economic growth, the bank said. The reduction of the rate that the bank charges commercial banks on overnight loans does not, however, signal the start of a cycle of cuts in this rate, the Bank of Mexico said in a statement. Mexico ended 2012 with inflation of 3.57 percent. For this year the goal is around 3 percent. As of February it was running at an annual rate of 3.55 percent. Following the announcement, the Mexican stock exchange gained slightly, closing 0.8 percent higher, while the peso also gained 1.01 percent, closing at 12.38 per dollar. The world economy continues to show signs of weakness and short term risks for Mexico include the impact of deep cuts in government spending by the United States, where $85 billion in automatic cuts go into effect this fiscal year, the bank said. The Mexican central bank's benchmark rate had been at 4.5 percent since July 2009.
GMT 19:30 2018 Wednesday ,03 January
EU launches last crisis-battling finance reformGMT 17:13 2017 Thursday ,14 December
South Korea bans its banks from dealing in BitcoinGMT 19:16 2017 Monday ,11 December
Britain’s smaller banks jostle for business banking grantsGMT 19:31 2017 Sunday ,10 December
Britain’s smaller banks jostle for business banking grantsGMT 17:28 2017 Thursday ,07 December
India's central bank holds rates at seven-year lowGMT 17:55 2017 Sunday ,03 December
Saudi banks prepare for riyal coinsGMT 15:10 2017 Wednesday ,29 November
Societe Generale shares climb after cost-cutting planGMT 19:22 2017 Friday ,17 November
Deutsche Boerse taps top banker as new CEO
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor