Banxico holds interest rate at 11.00%; Deputy Gov. Mejia Castelazo votes for 25 bps cut. Officials cite financial market volatility and unique economic factors in Mexico. USD/MXN dips to 18.35 post-Banxico, then climbs, gaining 0.42%. On Thursday, the Bank of Mexico decided to hold the overnight interbank interest rate at 11.00%, as expected by most market participants.
Its mission is to preserve the value of Mexico’s currency, the Mexican Peso , 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%. How does the Bank of Mexico’s monetary policy influence the Mexican Peso? The main tool of the Banxico to guide monetary policy is by setting interest rates.