MEXICO CITY, Sept 13 (Reuters) - Mexico’s central bank Governor Agustin Carstens said on Thursday that the bank will not hesitate to adjust monetary policy if factors that have accelerated inflation become permanent.
“During our last monetary policy meeting we emphasized that we would not hesitate to adjust the policy stance if we see that the transitory factors become permanent,” Carstens said at a conference in Mexico City.
Mexico held its benchmark rate at 4.5 percent last week, but policymakers said they were closely watching to see if a spike in inflation from food costs could spill over into wider inflation pressures.
But Carstens said on Wednesday that he expected the rise in inflation above the central bank’s 4 percent limit -- to an almost 2-1/2 year high -- would be temporary.
Mexico’s economy lost momentum in the second quarter as exports to the United States cooled.