(Adds Banxico’s comments, background)
MEXICO CITY, May 13 (Reuters) – Mexico’s central bank on Thursday kept its key interest rate steady at 4.0%, as expected, in a unanimous decision by its five-member board, saying that a highly uncertain environment posed major challenges for monetary policy.
It was the second meeting in a row the Bank of Mexico, known locally as Banxico, has kept the key rate unchanged after cutting by 25 basis points in February.
“In a highly uncertain environment, the risks for inflation, economic activity and financial markets pose major challenges for monetary policy,” Banxico said in its statement.
All 20 analysts surveyed by Reuters forecast Banxico would maintain borrowing costs at 4.0%, as inflation has surged well above the bank’s 2%-4% target range. (Reporting by Anthony Esposito; Editing by Frank Jack Daniel)
