The Federal Reserve of the EU postponed the increase to your interest rate of reference – Expansion MX

MEXICO CITY (Expansion) –

The united States Federal Reserve (Fed) kept unchanged its reference rate for the sixth time in the year, in line with what is expected by most analysts.

The Federal Open Market Committee (FOMC, for its acronym in English) of the Central Bank announced its decision of monetary policy, which kept its rate key in a range of between 0.25 to 0.50%, according to a statement released this Wednesday, after concluding its two-day meeting.

“The short-term risks to the economy are more or less balanced,” he said.

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The decision on the rate was not unanimous by the 10 members that were present at the meeting, as the bankers Esther L. George, Loretta J. Mester, and Eric Rosergen calling for an increase in the interest rate.

The FOMC expects inflation to remain low in the short term, in part due to the decline in energy prices earlier, but at the height of 2 per cent in the medium term as transitory effects of previous downturns in the prices of energy and imports are resolved and the workforce further strengthens the market.

The Committee considered that the case of an increase of the rate of reference has been strengthened, but have decided, for now, expect to find greater evidence of the progress of their objectives.

The Central Bank, the most powerful in the world, raised in December of last year, your rate of interest to that range, the first increase in nearly a decade after the crisis of 2008, and since then have not made any changes.

investors have been aware of the meetings of the Fed and its decisions, as well as the creation of employment, a number that the institution presided over by Janet Yellen follows closely and has averaged 232,000 jobs in the last three months.

The announcement of monetary policy of the Fed was followed with great attention in Mexico, so it became one of the factors that pushed the weight this week, bringing it to historic lows.

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Other factors that have pressured the weight are the elections in the united States and a hypothetical victory of Donald Trump.

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The Bank of Mexico (Banxico) also awaited the announcement of the Fed, because in December the entity ruled by Agustín Carstens adjusted its benchmark rate after a similar move of its us counterpart.

The FOMC will have two more meetings in the remainder of the year. The next is the 1and 2 of November, a few days of the presidential election of the united States, but the possibility of a rate increase would be until the appointment of the 14th of December, the last of the year.

The chairwoman of the Fed, Janet Yellen, said after the understanding of the last statement of monetary policy of the agency that the country’s growth looked more robust and that the rate increases would be needed to prevent the activity from overheating, and fuel high inflation.

“we Assess that the argument for an increase (in rates) has been strengthened, but we decided to wait for the moment,” said Yellen at a press conference. “The economy has a little more space to move forward”.

Yellen said she expects a boost this year if the labour market continues to improve, and no new major risks.