(Adds comments from governor)
MERIDA, Mexico, March 16 (Reuters) - Bank of Mexico's
main focus is tackling inflation, deputy governor Galia Borja
said on Thursday, when asked how fears of a banking crisis
roiling U.S. and European markets could impact monetary policy
at the central bank.
"Many variables come into play," Borja told Reuters on the
sidelines of a banking convention in the city of Merida in
Mexico's Yucatan peninsula. "But the main one is inflation,
which is our mandate."
"The behavior of inflation is more important, but we take
everything into account," she added.
Bank of Mexico Governor Victoria Rodriguez said later on
Thursday that the central bank's board would consider "the
monetary stance that has already been reached, as well as how
the data have developed" when it met next on March 30.
Mexico's core consumer prices slowed by more than expected
to 8.29% in the year to February, data from statistics agency
INEGI showed last week, providing some relief as Latin America's
second-largest economy grapples with high inflation and interest
rates.
The failures last week of U.S.-based Silicon Valley Bank and
Signature Bank during a period in which central banks have been
rapidly raising interest rates to tackle inflation have rippled
through financial markets around the globe.
The turmoil has fueled speculation that it could lead to a
rethink of monetary policy at central banks.
Rodriguez said the central bank did not foresee a negative
spillover on Mexican banks, noting they were "well-capitalized"
with room to maneuver above regulatory minimums.
Bank of Mexico last month raised the key interest rate by 50
basis points to 11.00%, but minutes of the meeting showed most
board members considered a more modest rate rise could be made
at the March 30 meeting.
(Reporting by Valentine Hilaire and Noe Torres; Writing by
Kylie Madry and Sarah Morland; Editing by Dave Graham and Jamie
Freed)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.