Minutes Release Reveals Few New Details

Banxico minutes: https://www.banxico.org.mx/publications-and-press/...

• All members mentioned that the central banks of Brazil and Chile lowered their reference rates in response to specific macroeconomic conditions in each economy.
• One member underlined that in both cases headline inflation has been declining.
• Another member noted that, although inflation in Chile has not converged to the central bank’s target, as it has in Brazil, the high level of unemployment and the outlook for lower growth motivated the interest rate cut.

• Most members stated that the disinflation process in Mexico remains underway
• They added that the appreciation of the Mexican peso has contributed to ease price related pressures.
• Some members forewarned that this process has also relied on comparison base effects.