Mexico Central Bank Keeps Overnight Rate Unchanged

Mexico Central Bank Keeps Overnight Rate Unchanged

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Business

University

Hard

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The Bank of Mexico is keeping its interest rates steady at 7%, as expected, due to easing inflation pressures in early September. Economists predict no rate hikes this year or next. The dollar-peso exchange rate shows minimal reaction, aligning with the ongoing trend of a weaker dollar since the year's start. Much of this was already anticipated by the market.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current interest rate set by the Bank of Mexico?

8%

7%

6%

5%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do economists believe there is no need to raise interest rates this year?

Inflation pressures have increased

Inflation pressures have eased

The economy is shrinking

The peso is strengthening

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the dollar-peso exchange rate reacted to the Bank of Mexico's decision?

It has become highly volatile

It has shown little reaction

It has weakened significantly

It has strengthened significantly

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What trend has been observed with the dollar since the beginning of the year?

A stronger dollar

A weaker dollar

A stable dollar

A volatile dollar

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the market's reaction to the Bank of Mexico's decision to hold rates?

A significant market rally

A major market downturn

Minimal market reaction

Increased market volatility