Mexico is unlikely to cut its benchmark interest rate because the nation’s economy is strengthening, said Javier Guzman, a deputy central bank governor and one of five board members who set borrowing costs.
Mexican policy makers cut their growth forecast for this year in half after stagnant exports and a flagging construction industry led them to reduce interest rates by the most since the 2009 recession.
Yields on Mexico’s peso bonds rose for a fourth day on speculation that the U.S. Federal Reserve may move sooner than some investors expected to curtail monetary stimulus that has boosted demand for emerging-market assets.
U.S. stocks rose, sending the Standard & Poor’s 500 Index to a record, as sales at Amazon.com Inc. and Microsoft Corp. beat estimates. Treasuries climbed amid bets the Federal Reserve will maintain stimulus and Mexico’s peso climbed as the central bank signaled a halt to rate cuts.