MEXICO CITY—The Bank of Mexico on Wednesday rescheduled its
monetary policy decisions for the remainder of this year so that
its meetings follow those of the U.S. Federal Reserve, given the
possibility the central bank will respond to an increase in U.S.
rates with increases of its own.
The Bank of Mexico moved back its scheduled meetings for July,
September, October and December, which were originally set to occur
ahead of the corresponding meetings by the U.S. Federal
Reserve.
The central bank, which has kept its overnight lending-rate
target at a record-low 3% for the past year, is widely expected to
start raising rates when the Fed does, since higher U.S. yields
could cause the peso to depreciate against the U.S. dollar and
prompt investors to move into dollar-denominated assets.
The bank cited "the importance that the relative monetary
stances between Mexico and the U.S. could have on the exchange rate
and inflation expectations, as well as on prices in Mexico."
The new dates will give the board of governors "the most
up-to-date information on the monetary decisions of the U.S.
Federal Reserve when they make their deliberations," the bank
added.
"After this announcement, we confirm our view that the Bank of
Mexico will hike rates right after the U.S. Fed," Barclays said in
a note.
The Bank of Mexico's next scheduled meeting was moved to July 30
from July 23, and now comes a day after the Fed's meeting this
month. The Bank of Mexico will also meet on Sept. 21, Oct. 29, and
Dec. 17.
Write to Anthony Harrup at anthony.harrup@wsj.com
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