The Bank of Mexico stood pat on interest rates Thursday, as widely expected, betting that a recent surge in consumer prices is close to a peak.
Mexico's central bank left its overnight interest-rate target unchanged at 7% after seven consecutive rate increases that put borrowing costs at their highest level since early 2009. The decision was unanimous among voting members.
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Inflation hit a more than eight-year high in July at 6.44%, well above the central bank's 3% target, as a result of a big increase in gasoline prices earlier this year and a recent pickup in agricultural prices.
But in its policy statement, the central bank said inflation "seems to be nearing to a peak." The bank expects inflation to start slowing down late this year and approach the target by the end of 2018.
Write to Juan Montes at firstname.lastname@example.org
(END) Dow Jones Newswires
August 10, 2017 14:46 ET (18:46 GMT)