On Thursday, the Bank of Mexico, also known as Banxico, decided to hold interest rates unchanged at 6.50% for the fourth time, as expected, in a unanimous vote. The Bank of Mexico, also known as Banxico, is the country’s central bank. Its mission is to preserve the value of Mexico’s currency, the Mexican Peso (MXN), and to set the monetary policy. To this end, its main objective is to maintain low and stable inflation within target levels – at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%. The main tool of the Banxico to guide monetary policy is by setting interest rates.
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