Mexico president backs cenbank hikes over inflation, but slams board member

8/18/2021

Source: Reuters

Mexican President Andres Manuel Lopez Obrador on Wednesday backed the central bank’s recent moves to raise interest rates, but took a swipe at a board member for criticizing his plan to allocate International Monetary Fund resources to pay off debt.

“I respect that decision they’re taking because inflation must be kept under control,” he told a regular news conference. “This should be something that matters to all of us.”

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Analysts see Mexico inflation at double cenbank’s target in 2021, despite rate hikes

07/13/2021

Source: Reuters

MEXICO CITY (Reuters) – Though the Bank of Mexico hiked its key interest rate last month to stem surging inflation, analysts have increased their forecasts for Mexican inflation to around 6% for year end, double the central bank’s target.

Banxico, as the central bank is known, unexpectedly raised the benchmark interest rate by 25 basis points to 4.25% at its June 24 monetary policy meeting, saying it was necessary to avoid adverse effects on inflation expectations and citing price formation in the United States.

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Mexico inflation almost unchanged in June, well over cenbank target

07/08/2021

Source: Reuters

MEXICO CITY, July 8 (Reuters) – Mexican annual inflation was virtually unchanged in June, slowing slightly less than expected and remaining well above the central bank’s target rate, official data showed on Thursday.

Annual consumer price inflation in Latin America’s no. 2 economy dipped last month to 5.88% from 5.89% in May, according to figures published by national statistics agency INEGI. A rate of 5.86% had been forecast in a Reuters poll of analysts.

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Mexican manufacturing declines for fourth third straight month

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Photo by Екатерина Александрова on Pexels.com

10/01/19 – Reuters

By Anthony Esposito

Activity in Mexico’s manufacturing sector contracted for a fourth straight month in September, a survey showed on Tuesday, on the back of deteriorating economic conditions, weak client confidence and soft demand.

The IHS Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI stood at 49.1 in September, barely higher than the 49.0 in August, which was the lowest reading in the survey’s nearly 8-1/2 year history.

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Mexico Cuts Key Rate for Second Month as Inflation Slows to Goal

""Mexico’s central bank reduced borrowing costs for the second straight month after inflation slowed to its target, the economy stalled and the U.S. cut interest rates.

The board, led by Governor Alejandro Diaz de Leon, lowered the benchmark rate a quarter point to 7.75% after cutting it for the first time in five years in August. The decision was forecast by 22 of 25 economists surveyed by Bloomberg. One expected policy makers to keep the rate unchanged, and two projected a larger half-point cut.

Mexico’s central bank reduced borrowing costs for the second straight month after inflation slowed to its target, the economy stalled and the U.S. cut interest rates.

The board, led by Governor Alejandro Diaz de Leon, lowered the benchmark rate a quarter point to 7.75% after cutting it for the first time in five years in August. The decision was forecast by 22 of 25 economists surveyed by Bloomberg. One expected policy makers to keep the rate unchanged, and two projected a larger half-point cut.

 

black and white business chart computer
Photo by Lorenzo on Pexels.com

09/26/19 – Bloomberg

By Eric Martin

Mexico’s central bank reduced borrowing costs for the second straight month after inflation slowed to its target, the economy stalled and the U.S. cut interest rates.

The board, led by Governor Alejandro Diaz de Leon, lowered the benchmark rate a quarter point to 7.75% after cutting it for the first time in five years in August. The decision was forecast by 22 of 25 economists surveyed by Bloomberg. One expected policy makers to keep the rate unchanged, and two projected a larger half-point cut.

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Mexico central bank has more reason to cut rates after low Aug inflation

peso by Guanatos Gwyn

09/10/19 – Reuters

By Abraham Gonzalez & Anthony Esposito

Mexico’s central bank now has another reason to reduce its benchmark interest rate again this year, as annualized inflation cooled in August to a nearly three-year low and the economy has struggled to pick up steam.

Several analysts raised their bets for a rate cut after inflation eased to 3.16% in August, undershooting the 3.20% consensus forecast of economists polled by Reuters poll and taking the headline rate to its lowest since October 2016.

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Mexico inflation milder than forecast in January

2/7/2019 – Reuters

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(REUTERS/Edgard Garrido/File Photo)

By Anthony Esposito and Jonathan Oatis

MEXICO CITY (Reuters) – Mexican consumer prices rose at a milder pace than anticipated in the first month of the year, increasing 4.37 percent in the year through January, the national statistics agency said on Thursday.

Consumer prices rose 0.09 percent in January, according to non-seasonally adjusted figures.

Ten analysts and economists polled by Reuters had forecast annual inflation of 4.49 percent in January and monthly inflation of 0.20 percent.

The core index, which strips out some volatile food and energy prices, rose 0.20 percent during the month.

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Mexican Inflation Rises More Than Expected on Food, Electricity Costs

12/07/2018 – The Wall Street Journal

MEXICO CITY—Mexican consumer prices rose more than expected in November, led by seasonal increases in electricity costs and higher food prices.

The consumer-price index rose 0.85% last month, the National Statistics Institute said Friday. The increase was smaller than the 1.03% rise in November 2017, and pushed the annual inflation rate down to 4.72% from 4.9% in October.

Core CPI, which excludes agricultural goods and energy, rose 0.25%, with the annual rate slowing to 3.63% from 3.73%.

Mexican Inflation Slowed Modestly in October

11/08/2018 – The Wall Street Journal

black-and-white-business-chart-241544By Anthony Harrup

MEXICO CITY — Mexico’s consumer-price inflation eased slightly in October as a drop in agricultural prices partially offset higher energy costs, but left the annual rate well above the central bank’s 3% target.

The consumer price index rose 0.52% last month, pushing annual inflation down to 4.9% from 5.02% in September, the National Statistics Institute said Thursday.

Core CPI rose 0.31%, led by a 0.39% increase in services, nudging the annual rate up to 3.73% from 3.67% in September.

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Mexico inflation rose less than expected in early October

10/24/2018 – Reuters 

argentina-bazaar-buenos-aires-1060803.jpgMEXICO CITY (Reuters) – Mexican annual inflation in the first half of October rose less than expected, official data showed on Wednesday, but the rate was still above the central bank’s target.

Mexican inflation in the 12-months through early October rose 4.94 percent, the national statistics institute said, compared to expectations for a 5.00 percent increase in a Reuters poll. It was up from 4.88 percent in early September.

Yields on Mexican interest rate swaps MXNIRS bid slightly lower after the data as investors trimmed bets on an interest rate hike at the next central bank announcement on Nov. 15.

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