The Bank of Mexico (Banxico) decided keep your main interest rate at 4.25% and the peso extended gains against the dollar.
Moments before the authority gave the announcement at 13:00 hours, the exchange rate stood at 19.81 pesos and a half hours after achieving a league appreciation of 19.77 units, being the best level of the Mexican currency since Tuesday last week.
The peso accumulated a gain of 0.5% or nine cents compared to the close this Wednesday, 19.86 units, according to quotes in May reported by Bloomberg.
In CitiBanamex windows, the dollar sells at 20.28 pesos, five cents less than yesterday and also represents its lowest price since last week.
This afternoon, the Board of Governors of Banxico announces a decision that will leave unchanged its interest rate by 4.25%, as it maintained last November 12, after cutting since August 2019.
With the presence of all its members, the Governing Board of the # BancodeMéxico decided by a majority, to keep the one-day Interbank Interest Rate at a level of 4.25%. https://t.co/NCZr4lAqx1 pic.twitter.com/iA9aaGIoEu
– Bank of Mexico (@Banxico) December 17, 2020
Also read: That Banxico is not an employee of the ‘machuchones’: AMLO
The decision is in line with most forecasts, although there were some institutions, such as Casa de Bolsa Vector, owned by Alfonso Romo, former head of the Office of the President, who estimates a reduction this Thursday.
However, before Banxico made its announcement this afternoon, the peso was already gaining ground on the dollar thanks to substantial advances on the US fiscal package, amounting to around $ 900 billion, and optimism about the distribution of the Covid-19 vaccine in Europe.
This Thursday, the Central Bank of England also announced that it is leaving its main interest rate unchanged, as is the set-up of the asset purchase program.
Despite the uncertainty, members of the central bank assume that Reino
The United Kingdom and the European Union will reach an agreement on their exit from the community, although they will ensure that they have greater tools to increase the monetary stimulus than necessary.
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