(Adds economist’s comments, background)
MEXICO CITY, May 13 (Reuters) - Mexico’s central bank on Thursday kept its key interest rate steady, as expected, in a unanimous decision by its five-member board that reflected growing concerns about the path of inflation and expectations the next move would likely be a hike.
For the second meeting in a row, the Bank of Mexico, known locally as Banxico, kept the rate unchanged at 4.0%, after cutting it by 25 basis points in February.
Banxico said that inflation expectations for 2021 had risen since its last monetary policy meeting. It said expectations for the medium and long-term periods remained stable above the 3% target.
Asia shares wallow near one-month lows on inflation anxiety yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Asia shares at one-month lows as sell-off extends on inflation anxiety Toggle share menu
Advertisement
Asia shares at one-month lows as sell-off extends on inflation anxiety U.S. stocks fell on Tuesday as speculation that rising inflation pressure could prompt interest rate hikes sooner rather than later dragged on shares and hobbled the dollar, which struggled at a 2-1/2-month low.
FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid
12 May 2021 08:50AM (Updated:
12 May 2021 10:00AM) Share this content
Bookmark
SYDNEY: Asian shares fell for a second straight session on Wednesday to one-month lows as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally.
By Koh Gui Qing NEW YORK (Reuters) - U.S. stocks hit a one-month low on Tuesday as speculation that rising inflation pressure could prompt interest rate hikes sooner rather than later dragged on shares and hobbled the dollar, which hovered near a 2-1/2-month low. Technology stocks were among the biggest losers, mirroring a sell-off in China, where talk of tighter regulation sent technology shares skidding. But U.S. shares clawed back some of their losses over the course of the day, with the tech-focused Nasdaq Composite reversing the bulk of its early 2% decline. Investors said the snap back in shares suggested that inflation concerns were not quite so entrenched yet, despite rising commodity prices and labor shortages in the United States. They said the sheer volume of money sloshing around in financial markets also meant some individuals are always looking to invest their cash on pull-backs.
GLOBAL MARKETS-Inflation anxiety jolts stocks, Asia tumbles to two-month lows Reuters 1 hr ago
Popular Searches MSCI ex-Japan down for a second straight session Index near 2-mth lows, after tumbling 1.6% on Tuesday Markets await U.S. inflation report
By Swati Pandey
SYDNEY, May 12 (Reuters) - An extended sell-off drove Asian shares to their lowest in seven weeks on Wednesday as surging commodity prices and growing inflationary pressure in the United States prompted markets to bet on earlier rate hikes and higher bond yields globally.
Futures pointed to a gloomy start for European and U.S. shares with those of Eurostoxx 50, Germany s Dax and London s FTSE all down 0.2% each.