MNI BRIEF: Rate Cuts For The Rest Of The Year - Banxico's Ceja
MNI (BRASILIA) - The governor of the Central Bank of Mexico, Victoria Rodríguez Ceja, said Thursday that the board anticipates further rate cuts throughout the rest of the year while maintaining a restrictive stance. She also noted that recent improvements in inflation are consistent with a looser monetary policy.
"Headline inflation is expected to converge to the 3% target in the third quarter of 2026, and core inflation to reach that level in the second quarter of that year," she said at the Chapultepec Conference, sponsored by the BIS, a few hours after Banxico's decision to cut rates by 50 basis points to 9.50%.
"We contemplate that in the next meeting, we may consider a downward adjustment of similar magnitude. We are anticipating that the inflationary environment will allow for further cuts during the rest of the year, although maintaining a restrictive stance," she added. (See MNI WATCH: Banxico Signals More 50BP Cuts At Coming Meetings)