MNI BRIEF: Falling Inflation Supports Cuts - Banxico Minutes
MNI (BRASILIA) - All members of the Central Bank of Mexico's board agreed that services inflation remains persistent, but October data showed some improvement, with services inflation falling below 5%, according to minutes of the last meeting released Thursday. The board reiterated that the inflationary environment will support further rate cuts.
"All members agreed that services inflation continued to show persistence ... However, all members highlighted that in October, services inflation fell below 5% to 4.98%. The majority noted that this had not occurred since July 2022," the document stated.
The minutes also noted that headline inflation rose in October, attributing the increase to higher non-core inflation, while core inflation continued its decline.
Banxico 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)