POLL-Mexico central bank seen holding rates steady as inflation cools

By Kitco News / April 09, 2018 / www.kitco.com / Article Link

By Miguel GutierrezMEXICO CITY, April 9 (Reuters) - Mexico's central bank isseen keeping its benchmark interest rate steady later this weeksince the pace of inflation has started trending slower, aReuters poll published on Monday shows.Of the 21 analysts surveyed, 18 expected the Banco de Mexicoto hold the rate steady at 7.50 percent, anine-year high touched in the last monetary policy meeting inFebruary. The bank's board will meet on Thursday, with its interestrate decision released at 1 p.m. local time (1800 GMT).Banco de Mexico Governor Alejandro Diaz de Leon oversawquarter-percentage-point hikes in each of his first two policymeetings after taking over at the bank in December.Three analysts surveyed said they expected a 25-basis-pointrise, to 7.75 percent, on the basis that inflation expectationscould be pressured by a possible delay in talks to renegotiatethe North American Free Trade Agreement (NAFTA), or concernssurrounding Mexico's July 1 presidential election.Official data showed on Monday that Mexican inflationnonetheless cooled more than expected in March to the lowestlevel in over a year, bolstering the view that the central bankwill hold rates steady at this week's monetary policy meeting. The inflation data came shortly after Mexico's economyminister said he saw an 80 percent chance of a new NAFTA deal bythe first week of May, adding that conditions were not right forreaching an agreement this week. The median response of the analysts surveyed showed thatrates would likely be at 7.50 percent at the end of 2018, thesame result as in the previous monetary policy survey. (Reporting by Miguel Angel Gutierrez, editing by G Crosse)

Reuters Messaging:gabriel.stargardter.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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