Mexico's Carstens says interest rate cut not done deal

MEXICO CITY Wed Feb 13, 2013 2:54pm EST

Related Topics

MEXICO CITY Feb 13 (Reuters) - Mexico's central bank governor Agustin Carstens said on Wednesday that any cut to the bank's benchmark interest rate is not a done deal and will depend upon inflation.

Carstens said the inflation trend must consolidate before the bank will cut its 4.5 percent interest rate, which it has maintained since mid-2009.

The central bank governor noted he did not share the view of some central banks that target lower foreign exchange rates through monetary policy, adding that currency wars only lead to tears.

He also noted that the bank would have to remain vigilant to ensure capital inflows do not create a bubble but said he not see evidence of one currently.

FILED UNDER: