Bank of Mexico keeps interest rate on hold

The Bank of Mexico, the country's central bank, held its overnight lending rate at 7.25% on 22 June, after a larger than expected fall in consumer prices in May.

In April the central bank raised interest rates for the first time for nearly two years, and stated that it expected inflation to fall to 3% towards the end of 2008.

Inflation has fallen in the past two months to within the central bank's target of 3%, plus or minus one percentage point, which has lessened the pressure for further rat