Mexican Central Bank Rate Cut – Currency Thoughts
Mexican Central Bank Rate Cut
December 20, 2024
The Bank of Mexico’s policy interest rate has been reduced by another 25 basis points to 10.0%. This was the fourth such cut since August and the fifth one since March. The rate had been at a peak of 11.25% for a year prior to that initial easing. The latest cut was made in reaction to a somewhat weaker prognosis for Mexican growth and despite an modest upward revision in the forecast path of inflation. “Headline and core inflation are still foreseen to follow a downward trend. However, considering a greater persistence in services inflation, these forecasts were revised upwards,” according to the released statement. More rate cuts are envisaged in the future.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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