The Banco de Mexico held its overnight interest rate target steady at 4.50%. In its monetary policy statement the Bank noted: “Annual general inflation and its core and non-core components have shown a favorable evolution, although there was a slight increase recently,” further noting a “persistent slack in the economy, a declining trend in unit labor costs” and “increased levels of competition in some sectors of the economy,” adding, “in addition, inflation expectations have not been affected by the recent depreciation of the exchange rate,” also commenting that “a currency rate anchored by solid fundamentals of the Mexican economy.”