MEXICO CITY (Reuters) – Bank of Mexico Deputy Governor Jonathan Heath said the best scenario for Mexican interest rates would be a “relatively long pause” to wait and see what the U.S. Federal Reserve does, adding if inflation does not east to near 5%, Banxico would have to act.
Banxico’s board decided by a majority at its last policy meeting on June 24 to raise the benchmark interest rate by 25 basis points to 4.25%, saying it was necessary to avoid adverse effects on inflation expectations and citing price formation in the United States.
(Reporting by Anthony Esposito, Ana Isabel Martinez and Sharay Angulo; editing by Cassandra Garrison)
