MNI BRIEF: Banxico Set To Consider Larger Rate Cuts - Minutes
MNI (WASHINGTON) - The Central Bank of Mexico will consider larger interest rate cuts amid an improving but still challenging inflation environment, minutes from its December meeting released Thursday showed.
"The Board expects that the inflationary environment will allow further reference rate reductions. In view of the progress on disinflation, larger downward adjustments could be considered in some meetings, albeit maintaining a restrictive stance," the report said.
Banxico unanimously reduced its overnight interbank interest rate by 25 basis points to 10.00% last month, marking the fourth consecutive cut, and signaled further reductions next year, potentially including larger ones. (See MNI WATCH: Banxico Signals Larger Cuts Next Year)
Mexican inflation slowed to 4.21% in December from 4.55% in November, data published Thursday showed. However, core inflation ticked up to 3.65% from 3.58%, a pattern that could become worrisome if it persists.