Bank of Mexico Governor Rodriguez said Mexico can set monetary policy independently because its economic conditions differ from the US. The Fed is facing a tight labor market, strong demand and rising energy prices that are adding inflationary pressure; by contrast Mexico has spare capacity and government measures have cushioned the energy-price shock from the Iran conflict. Rodriguez said Mexican policy need not mechanically track expected federal funds rate moves and that Banxico will assess t

Bank of Mexico Governor Rodriguez said Mexico can set monetary policy independently because its economic conditions differ from the US. The Fed is facing a tight labor market, strong demand and rising energy prices that are adding inflationary pressure; by contrast Mexico has spare capacity and government measures have cushioned the energy-price shock from the Iran conflict. Rodriguez said Mexican policy need not mechanically track expected federal funds rate moves and that Banxico will assess the overall inflation outlook — including domestic activity, inflation expectations, exchange-rate movements and financial conditions — using all available information at each meeting rather than focusing on any single indicator.