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UPDATE 1-Mexico's Carstens sees no need for extraordinary rate-setting meeting
May 26, 2016 / 1:52 PM / a year ago

UPDATE 1-Mexico's Carstens sees no need for extraordinary rate-setting meeting

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MEXICO CITY, May 26 (Reuters) - Mexico’s central bank governor Agustin Carstens said on Thursday that at the moment he saw no reason to hold an extraordinary board meeting on rate-setting policy.

“We don’t see an imminent reason or an extraordinary reason for having an extraordinary meeting,” Carstens told a local radio station.

In its quarterly inflation report on Wednesday, the central bank maintained its 2016 economic growth forecast at between 2.0-3.0 percent, but trimmed its view for 2017 slightly to between 2.3-3.3 percent.

A sharp drop in Mexico’s peso pushed the central bank in February to intervene directly in currency markets for the first time since 2009 and to raise interest rates unexpectedly after an unannounced meeting.

Asked whether the bank could hike rates again before the U.S. Federal Reserve doe so, Carstens said in the Thursday interview that although there had been volatility in the peso, inflation had been below the target level for a year.

“Never say never but I’d say, given what we’ve seen up to now and the amount of time until our next meeting, I think it won’t be necessary to call an extraordinary meeting to take any interest rate measures,” he said. (Reporting by Christine Murray; Editing by W Simon)

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