Banco de Mexico leaves one-day interbank overnight funding rate unchanged at 8.25%

By Richard Connell

New York, Sept. 19 - Banco de Mexico's Board of Governors left its one-day interbank overnight funding rate unchanged at 8.25%, saying that slowing economic growth will keep inflation within its target level.

The board noted that the intensifying global financial crisis, particularly in the United States, would lead to a tightening of credit and thus a slowdown in economic activity.

The board also pointed out that while in the beginning part of the year Mexico had not been adversely affected by the troubles in the U.S. economy, recently risks of an economic slowdown had been increased.

While the board believes it will not reach its goal of an inflation level of 3% until 2010, it feels that it will be able to improve inflation for the medium term.

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