MNI BRIEF: Banxico Discussing Rate Cuts; Trump Impact Unclear
MNI (BRASILIA) - Mexico’s central bank Governor Victoria Rodriguez Ceja said Wednesday it's premature to discuss potential implications of the 25% tariffs promised by U.S. President-elect Donald Trump, and reinforced the board will continue to look at further interest-rate cuts.
"We lack sufficient information about the specific measures that will be adopted, even considering recent statements from U.S. authorities," she said during a virtual presentation of the central bank’s quarterly economic update.
"In the upcoming meetings, we anticipate that the inflationary environment will allow for additional adjustments to the reference rate. We will take into account the expectation that global shocks will continue to fade and the effects of weak economic activity," she added.
The Central Bank of Mexico reduced its overnight interbank interest rate this month by 25 basis points to 10.25%, marking the third consecutive cut and the first unanimous decision since May. (See MNI BANXICO WATCH: More Cuts Coming While Core Inflation Falls)