MEXICO CITY Jan 21 Mexican central bank chief
Agustin Carstens said on Monday it was still not time to lower
interest rates in the country, adding that the peso currency was
still relatively well anchored on economic fundamentals.
"It is not yet appropriate to reduce rates," Carstens said
in an interview with Radio Formula. "However, there are some
factors that have been occurring and if they continue (and)
consolidate, that could lead us to take that step."
"It is a decision that we have to take with a lot of care."
Mexico's central bank held borrowing costs steady last week,
but said it could cut rates if inflation continued to cool and
economic growth slowed, dropping its recent threat to tighten
The Mexican peso weakened for a second straight session on
Monday as investors speculated about a possible interest rate
cut by the central bank.
Mexico's peso slipped 0.6 percent to 12.69 per dollar on
Monday after hitting a 10-month high last week before the
central bank raised the possibility of scaling back the rate.