August 24, 2017 / 2:29 PM / a year ago

Mexico cenbank warns inflation risks still present

MEXICO CITY, Aug 24 (Reuters) - Mexico’s central bank on Thursday warned that inflation risks in Latin America’s second biggest economy have not improved since its last monetary policy decision, and vowed to ensure that a “prudent” stance is maintained on interest rate setting.

“The majority (of board members) considered that the balance of risks to inflation had not changed compared to the previous statement,” the bank said in the minutes of the central bank’s latest monetary policy decision earlier this month, when it held its benchmark interest rate at 7.00 percent.

The majority of members said even though inflation would continue to be above six percent in the next few months, it appeared to be reaching its peak, and forecast that by the end of the year the rate would begin to cool, the minutes added.

In the second half of 2018, the majority predicted that inflation would be heading towards its 3 percent target. (Reporting by Dave Graham and Frank Jack Daniel)

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