Orthodox Banxico policies ‘paying off' amid emerging market volatility

The Bank of Mexico's success in anchoring inflation expectations coupled with a relatively modest current account deficit has allowed it to maintain its accommodative monetary policy while other emerging markets tighten in response to the Fed taper, the central bank said in its quarterly report published yesterday.

"The implementation of a countercyclical monetary policy, without jeopardising the convergence of inflation to the above referred target… was possible thanks to the progress in