Mexico’s Third Central Bank Rate Cut Thus Far – Currency Thoughts
Mexico’s Third Central Bank Rate Cut Thus Far
November 15, 2024
The Bank of Mexico’s overnight interbank funding rate as expected was cut a third time since August to 10.25%. Like moves then and in September, today’s announced reduction was by a cautious 25 basis points. Mexico remains in Trump’s cross-hairs, and one risk is that U.S. protectionist measures affecting trade could depress the peso. CPI inflation in Mexico ticked up to 4.76% last month from September’s 6-month low, but core inflation receded to a 45-month low of 3.8%. The monetary board “expects that the inflationary environment will allow further reference rate adjustments.”
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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