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UPDATE 2-Mexico central bank holds interest rates steady

UPDATE 2-Mexico central bank holds interest rates steady Mexico's central bank held interest rates steady on Friday, although it is widely expected to push them lower later this month to help a struggling economy. With manufacturing output weak, the central bank began pushing rates lower in August and markets expect further cuts ahead, but analysts differ over whether policy-makers will pause in the easing cycle as the race for July 2006 elections heats up. The bank said in its twice-monthly policy review on Friday it was keeping its money market "short" steady at 79 million pesos a day and made no change

UPDATE 1-Mexico central bank holds interest rates steady

UPDATE 1-Mexico central bank holds interest rates steady Mexico's central bank held interest rates steady on Friday, although it is widely expected to push them lower again later this month to help a soft economy. The central bank said in its twice-monthly policy review it was keeping its money market "short" unchanged at 79 million pesos a day and made no change to the country's overnight lending rate, which stands at 9.00 percent. The short regulates overnight lending levels and was the central bank's main monetary policy weapon before it recently began explicitly telling markets how much rates should move. With inflation under

UPDATE 4-Mexico holds rates steady, sees inflation easing

UPDATE 4-Mexico holds rates steady, sees inflation easing Mexico's central bank on Friday said it expects inflation to drop inside its target range this year, but refused to ease monetary policy for now and insisted that interest rates should remain high. The central bank board said after its twice-monthly policy meeting it was keeping its money market "short" steady at 79 million pesos a day. An increase in the short reduces overnight lending to banks and tends to push interest rates higher. Although the bank said it sees inflation falling inside the target range of 2 percent to 4 percent this year, it

UPDATE 1-Mexico 28-day T-bills edge lower to 9.60 pct

UPDATE 1-Mexico 28-day T-bills edge lower to 9.60 pct The yield on Mexico's benchmark 28-day Cetes, or T-bills, edged one basis point lower to 9.60 percent on Tuesday as investors expect the central bank to hold monetary policy steady at a policy meeting this week. Longer-term rates moved lower, reflecting growing expectations that interest rates could come down in coming weeks. T-bill rates have drifted slightly lower in recent weeks as the inflation fears eased and the central bank set an informal reference rate in the secondary market. Mexico's central bank is due to hold its twice-monthly monetary policy review on Friday and most

UPDATE 4-Mexico pushes rates lower in historic move

UPDATE 4-Mexico pushes rates lower in historic move Mexico's central bank pushed interest rates lower on Friday for the first time in over three years to give the soft economy a boost, now that inflation is under control. It was the first time the bank has explicitly told markets where it wants interest rates to go, and analysts said it was a major step toward a U.S.-style reference rate system. "Considering the balance of risks versus inflation, the central bank has decided to allow a relaxation of domestic monetary conditions of no more than 25 basis points," the central bank said in

Mexico cenbank eases rates by 25 basis points

Mexico cenbank eases rates by 25 basis points Mexico's central bank pushed interest rates 25 basis points lower for a fourth straight month on Friday to fan a weak economy. With inflation under control, the central bank said it would allow the overnight lending rate to fall to 8.75 percent. The move had been widely expected. The bank held its money market steady at 79 million pesos per day. The bank controlled monetary policy through changes to the short before it began pushing rates down directly. After a long period of tightening monetary policy to bring inflation down, the central bank changed direction

UPDATE 1-Mexico 28-day T-bill yield edges down to 9.57 pct

UPDATE 1-Mexico 28-day T-bill yield edges down to 9.57 pct Mexico's benchmark 28-day T-bill yield edged down 1 basis point to 9.57 percent on Tuesday but longer-term rates fell sharply as investors bet the central bank will wait until next month before easing monetary policy. The yield on 91-day T-bills, or Cetes, fell 13 basis points to 9.56 percent and 175-day paper was down 11 basis points to 9.46 percent. The majority of analysts polled by Reuters on Tuesday predicted the central bank will not relax monetary policy this week, despite recent weak economic growth data. Mexico's finance ministry lowered its forecast for 2005

UPDATE 1-Mexico 28-day T-bill yield falls to 9.36 pct

UPDATE 1-Mexico 28-day T-bill yield falls to 9.36 pct The yield on Mexico's benchmark 28-day Cetes, or T-bills, shed 6 basis points to 9.36 percent on Tuesday, as investors bet the central bank will push down its key interest rate over the next few months. Longer-term rates also fell at the central bank auction. The decline in short-term interest rates was slightly bigger than market expectations. A Reuters survey of Cetes dealers had forecast the rate on the benchmark one-month paper would edge down 3 basis points to 9.39 percent. Following signs of a strong improvement in inflation, Mexico's central bank pushed interest rates

Mexico cenbank to keep monetary ’short’ for now

Mexico cenbank to keep monetary 'short' for now Mexico has no plans to abandon the money market 'short' it once used to fix monetary policy even though it now sets interest rates more directly, central bank governor Guillermo Ortiz said on Thursday. "We now have two (instruments), an interest rate floor and the short," Ortiz said after a speech in Mexico City. "We're keeping the short hidden away in a little box for now, in case we need it." For years, the central bank controlled monetary policy by tweaking the short, a restriction on the amount of overnight lending to banks that

UPDATE 2-Mexico central bank pushes interest rates lower

UPDATE 2-Mexico central bank pushes interest rates lower Mexico's central bank on Friday pushed interest rates 25 basis points lower for the second straight month to revive a tepid economy. The bank said it would allow the overnight lending rate, which has held at around 9.50 percent for the last month, to fall a quarter of a percentage point. The move was widely expected as inflation has come under control in recent months. After a long period of tightening monetary policy to bring inflation down, the central bank changed tack last month and began pushing rates lower to help the struggling economy. "The