#England #BankOfEngland #MonetaryPolicy #BankRate #AssetPurchaseProgram #Mexico #Target #Ukraine #NationalBankOfUkraine #OvernightInterbankRate #BancoDeMexico #Finance #JhunjhunwalasFinance
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Showing posts with label Mexico. Show all posts
Showing posts with label Mexico. Show all posts
Monday, 8 June 2015
#Monetary #Policy Update of #England #Mexico #Ukraine in 2015
#England #BankOfEngland #MonetaryPolicy #BankRate #AssetPurchaseProgram #Mexico #Target #Ukraine #NationalBankOfUkraine #OvernightInterbankRate #BancoDeMexico #Finance #JhunjhunwalasFinance
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Wednesday, 2 April 2014
Mexico Central Bank holds Policy Rates in 3rd week of March
21st March 2014
Mexico holds rate, rise in January inflation was temporary - Central Bank News
Mexico's central bank held its policy rate steady at 3.50 percent, as expected, and said the recent inflation data show the rise at the start of the year was transient and hasn't affected prices in general.
The Bank of Mexico, which cut its target for overnight rates by 100 basis points in 2013, said the rise in prices in January was anticipated and concentrated on a small number of goods with no second order effects from the changes in prices that took place in late 2013 and early 2014.
Both headline and core inflation fell in February and short-term inflation expectations have also declined slightly, the bank said, adding that expectations for 2015 and beyond have remained stable.
Mexico's headline inflation rate fell to 4.23 percent in February from a jump to 4.48 percent in January while core inflation eased to 2.98 percent from January's 3.2 percent.
In January the central bank had said it was keeping a close eye for signs of inflationary pressures in light of the rise in inflation due to higher public transport prices and taxes, with inflation expected to remain above 4.0 percent in the first few months of the year before declining in the second quarter toward the bank's target range of 2.0 percent to 4.0 percent.
Mexico's economy slowed in late 2013 and early this year and the bank said a clear recovery had not yet been seen in the components of demand.
"In particular, even when public spending is more buoyant, exports and private consumption and investment have yet to show clear signs of acceleration," the central bank said, adding that overall slack conditions prevail and the risks to economic activity had not improved markedly.
Mexico's Gross Domestic Product expanded by only 0.18 percent in the fourth quarter from the third quarter for annual growth of 0.7 percent, down from a rate of 1.4 percent in the third quarter. For the full year of 2013 growth fell to 1.1 percent from 3.9 percent in 2012.
The global economy, however, has continued to recover modestly in early 2014 and the outlook has improved despite major downside risks.
The Bank of Mexico, which cut its target for overnight rates by 100 basis points in 2013, said the rise in prices in January was anticipated and concentrated on a small number of goods with no second order effects from the changes in prices that took place in late 2013 and early 2014.
Both headline and core inflation fell in February and short-term inflation expectations have also declined slightly, the bank said, adding that expectations for 2015 and beyond have remained stable.
Mexico's headline inflation rate fell to 4.23 percent in February from a jump to 4.48 percent in January while core inflation eased to 2.98 percent from January's 3.2 percent.
In January the central bank had said it was keeping a close eye for signs of inflationary pressures in light of the rise in inflation due to higher public transport prices and taxes, with inflation expected to remain above 4.0 percent in the first few months of the year before declining in the second quarter toward the bank's target range of 2.0 percent to 4.0 percent.
Mexico's economy slowed in late 2013 and early this year and the bank said a clear recovery had not yet been seen in the components of demand.
"In particular, even when public spending is more buoyant, exports and private consumption and investment have yet to show clear signs of acceleration," the central bank said, adding that overall slack conditions prevail and the risks to economic activity had not improved markedly.
Mexico's Gross Domestic Product expanded by only 0.18 percent in the fourth quarter from the third quarter for annual growth of 0.7 percent, down from a rate of 1.4 percent in the third quarter. For the full year of 2013 growth fell to 1.1 percent from 3.9 percent in 2012.
The global economy, however, has continued to recover modestly in early 2014 and the outlook has improved despite major downside risks.
Mexico holds rate, rise in January inflation was temporary - Central Bank News
Wednesday, 19 February 2014
Mexico Central Bank holds Interest rates in the last week of January
31st January 2014
Mexico's central bank held its policy rate steady at 3.50 percent, as expected, but cautioned that it was keeping a close eye out for any signs of higher inflationary pressures or expectations in light of the recent rise in inflation and the risks to the peso' exchange rate from volatile international financial markets.
Mexico's inflation rate jumped to 4.63 percent in early January, above the Bank of Mexico's 3.0 percent target, due to higher public transport prices and taxes, and the central bank expects inflation to remain above 4.0 percent during the first few months of this year before it declines in the second quarter and remains within the bank's acceptable range of between 2 percent and 4 percent.
But the Bank of Mexico, which cut its target for overnight rates three times in 2013 by a total of 100 basis points, said it can't rule out that this temporary spike can lead to higher inflationary expectations, affecting the general price level, nor that the peso's exchange rate will be hit by volatility in global financial markets as they adjust to the reduction in asset purchases by the U.S. Federal Reserve.
"The Board (of the central bank) will remain vigilant to all pressures that might affect medium and long-term inflation and expectations," the central bank said, and it is monitoring the implications of inflation forecasts on economic activity and the relative monetary stance of Mexico to the United States in order to achieve the bank's inflation target.
Mexico's inflation rate started to pick up in November from a year-low of 3.36 percent in October, rising to 3.62 percent and then 3.97 percent in December, pushed up by higher transport prices and a seasonal rise in agriculture prices.
The further rise in early January has mainly affected goods and services directly impacted by higher taxes on soft drinks, junk food and carbon-based fuel and not lead to any rise in other prices, the central bank said. Inflation expectations for 2014 have picked up due to the expected impact of taxes, but remained stable for 2015, it added.
"This keeps the forecast in the sense that the recent increase in inflation will be temporary and will not affect the formation of prices in the economy," the central bank said.
The central bank has on several occasions in recent months said inflation this year should rise temporarily due to these higher taxes but expectations are still stable for 2015. In 2015 the government will start linking fuel prices to inflation, instead of monthly increases, removing a major contributor to inflation.
But the balance of risks to the central bank's inflation forecast has deteriorated due to the major adjustment in capital flows to emerging markets, and thus the cost of funds for Mexico, from the process of normalizing U.S. monetary policy, the bank said.
So far, Mexico's peso currency has fared better than many other emerging market currencies, down by only 2.6 percent this year to the U.S. dollar this year, trading at 13.39 to the dollar today. Last year the peso also weathered the drop in emerging market currencies much better than other currencies, falling by only 1.5 percent during the year, although it's largest decline came during May.
Overall, the central bank said the outlook for global economic growth has improved, though emerging markets could face higher costs of external finance, which it said highlights the importance for them to maintain fiscal discipline.
International commodity prices have continued to moderate in recent months and international inflation remains low.
Mexico's economy is also continuing to recover and is expected to continue to improve, the bank said, due to improved external demand and a nascent recovery in some parts of domestic demand, such as private consumption and government spending. Investment, however, has not yet shown sign of improving.
But better prospects for the U.S. economy could mean better demand for Mexico' products and structural reform measures could lead to better investment prospects in the medium term so the rate of economic growth can accelerate without generating inflation.
Mexico's economy slowed sharply last year compared with the two previous years and in the third quarter of 2013 its Gross Domestic Product only expanded by a quarterly 0.84 percent after a contraction of 0.55 percent in the second quarter. Compared with the third quarter of 2012, third quarter GDP grew by 1.3 percent, down from 1.6 percent in the second quarter
Mexico holds rate, but keeps eye on inflationary pressures - Central Bank News
Mexico's central bank held its policy rate steady at 3.50 percent, as expected, but cautioned that it was keeping a close eye out for any signs of higher inflationary pressures or expectations in light of the recent rise in inflation and the risks to the peso' exchange rate from volatile international financial markets.
Mexico's inflation rate jumped to 4.63 percent in early January, above the Bank of Mexico's 3.0 percent target, due to higher public transport prices and taxes, and the central bank expects inflation to remain above 4.0 percent during the first few months of this year before it declines in the second quarter and remains within the bank's acceptable range of between 2 percent and 4 percent.
But the Bank of Mexico, which cut its target for overnight rates three times in 2013 by a total of 100 basis points, said it can't rule out that this temporary spike can lead to higher inflationary expectations, affecting the general price level, nor that the peso's exchange rate will be hit by volatility in global financial markets as they adjust to the reduction in asset purchases by the U.S. Federal Reserve.
"The Board (of the central bank) will remain vigilant to all pressures that might affect medium and long-term inflation and expectations," the central bank said, and it is monitoring the implications of inflation forecasts on economic activity and the relative monetary stance of Mexico to the United States in order to achieve the bank's inflation target.
Mexico's inflation rate started to pick up in November from a year-low of 3.36 percent in October, rising to 3.62 percent and then 3.97 percent in December, pushed up by higher transport prices and a seasonal rise in agriculture prices.
The further rise in early January has mainly affected goods and services directly impacted by higher taxes on soft drinks, junk food and carbon-based fuel and not lead to any rise in other prices, the central bank said. Inflation expectations for 2014 have picked up due to the expected impact of taxes, but remained stable for 2015, it added.
"This keeps the forecast in the sense that the recent increase in inflation will be temporary and will not affect the formation of prices in the economy," the central bank said.
The central bank has on several occasions in recent months said inflation this year should rise temporarily due to these higher taxes but expectations are still stable for 2015. In 2015 the government will start linking fuel prices to inflation, instead of monthly increases, removing a major contributor to inflation.
But the balance of risks to the central bank's inflation forecast has deteriorated due to the major adjustment in capital flows to emerging markets, and thus the cost of funds for Mexico, from the process of normalizing U.S. monetary policy, the bank said.
So far, Mexico's peso currency has fared better than many other emerging market currencies, down by only 2.6 percent this year to the U.S. dollar this year, trading at 13.39 to the dollar today. Last year the peso also weathered the drop in emerging market currencies much better than other currencies, falling by only 1.5 percent during the year, although it's largest decline came during May.
Overall, the central bank said the outlook for global economic growth has improved, though emerging markets could face higher costs of external finance, which it said highlights the importance for them to maintain fiscal discipline.
International commodity prices have continued to moderate in recent months and international inflation remains low.
Mexico's economy is also continuing to recover and is expected to continue to improve, the bank said, due to improved external demand and a nascent recovery in some parts of domestic demand, such as private consumption and government spending. Investment, however, has not yet shown sign of improving.
But better prospects for the U.S. economy could mean better demand for Mexico' products and structural reform measures could lead to better investment prospects in the medium term so the rate of economic growth can accelerate without generating inflation.
Mexico's economy slowed sharply last year compared with the two previous years and in the third quarter of 2013 its Gross Domestic Product only expanded by a quarterly 0.84 percent after a contraction of 0.55 percent in the second quarter. Compared with the third quarter of 2012, third quarter GDP grew by 1.3 percent, down from 1.6 percent in the second quarter
Mexico holds rate, but keeps eye on inflationary pressures - Central Bank News
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