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  • Mexico's central bank on Thursday left its benchmark interest rate unchanged at 4.0 percent, voicing optimism that US stimulus measures will help to reinvigorate the country's pandemic-ravaged economy. The pause comes after the Bank of Mexico earlier this month upgraded its outlook for Latin America's second-largest economy, predicting growth of 4.8 percent this year. The decision by the governing board to leave the inter-bank rate unchanged was unanimous, the central bank said in a statement. Although international markets remain volatile, "there are higher expectations for growth" in the United States, Mexico's largest trading partner, thanks to massive fiscal stimulus, it said. While Mexico's economic activity slowed in January and February, when pandemic-control measures were in force in much of the country, the central bank now expects a boost from foreign demand. In February, the Bank of Mexico had lowered its key lending rate by 25 basis points, the first such cut since September. The Mexican economy shrank 8.5 percent in 2020, according to official figures, in what analysts said was the worst slump since the Great Depression. The country of 126 million people has registered almost 200,000 known coronavirus deaths -- the world's third-highest toll. sem/dr/mdl
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  • Mexico central bank leaves interest rate unchanged
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