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MEXICO CITY (Reuters) - Mexico’s central bank held its benchmark interest rate steady on Thursday, as expected, flagging economic uncertainty and risks surrounding the credit ratings of both state oil company Pemex and the government.
Among risk factors that have led to a discount on domestic assets or boosted risk premia, “those related to the credit rating of Pemex, and even to Mexico’s sovereign debt, are particularly noteworthy,” the bank said in its post-meeting statement.
In recent weeks, credit ratings agencies have issued warnings about Pemex, the sovereign rating, and dozens of corporations, expressing concern about the government’s plans to bail out the deeply indebted oil company.
The Bank of Mexico’s (Banxico) board members voted unanimously to hold the overnight interbank rate at 8.25 percent, its highest since August 2008.
Among risk factors that have led to a discount on domestic assets or boosted risk premia, “those related to the credit rating of Pemex, and even to Mexico’s sovereign debt, are particularly noteworthy,” the bank said in its post-meeting statement.
In recent weeks, credit ratings agencies have issued warnings about Pemex, the sovereign rating, and dozens of corporations, expressing concern about the government’s plans to bail out the deeply indebted oil company.
The Bank of Mexico’s (Banxico) board members voted unanimously to hold the overnight interbank rate at 8.25 percent, its highest since August 2008.