MEXICO CITY (Reuters) - Mexico’s central bank is still discussing raising interest rates either before or after the U.S. Federal Reserve takes action, the central bank’s deputy governor Manuel Ramos said in an interview with local radio on Wednesday.
In January, Bank of Mexico Governor Agustin Carstens suggested that an interest rate hike was very probable this year as the Federal Reserve is expected to raise rates.
“The discussion that we’re having, and that I think is still being carried out by the governing body, is whether or not it’s advisable to act in a preventative way in terms of moving before the Fed or if it’s better to wait until after the Federal Reserve moves first,” Ramos told Mexico City-based Radio Formula.
Earlier this week, Citigroup’s Mexican unit Banamex said that its view is that Mexico’s central bank will raise its reference rate in June before the Federal Reserve possibly approves its own interest rate hike.
“I don’t think that anyone or any emerging economy that has a high degree of financial integration with the global economy can avoid moving rates in the same direction as the United States,” added Ramos, one of five members of the central bank’s governing body.
Reporting by Luis Rojas; Writing by David Alire Garcia; Editing by Jacqueline Wong