Mexico sees option to shift pattern in rate hikes

Exercising caution: Borja speaking at the Bloomberg Mexico Capital Markets Forum. The country’s central bank says it will be data-dependent moving forward and watching to see if the economy improves before bringing down the rate hikes. — Bloomberg

MEXICO CITY: Mexico’s central bank sees an option to break from its pattern of interest rate hikes in tandem with the US Federal Reserve (Fed) if economic variables improve, deputy governor Galia Borja says.

The Fed’s monetary policy is one of the elements that Banxico, as the central bank is known, takes into account when deciding its rate, but whether they match one another’s pace “is conditional on the type of shocks that we face and it’s not mechanical,” Borja said at Bloomberg’s Mexico Capital Markets Forum.