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MNI INTERVIEW: Dovish Banxico More Data-Dependent-Ex-Economist

Ex-Banxico senior economist Alberto Armijo says a positive output gap could lead Banxico to postpone cuts.

Mexico's central bank is becoming more data dependent after a dovish tilt in its latest policy statement opened the door to interest rate cuts, putting even more weight than usual on upcoming inflation figures, former senior economist at Banxico Alberto Armijo told MNI.

"While the dovish bias in the statement is more noticeable, leaving the door open for cuts soon, there are still some elements that could be considered to postpone the cut in March," Armijo said in an interview.

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Mexico's central bank is becoming more data dependent after a dovish tilt in its latest policy statement opened the door to interest rate cuts, putting even more weight than usual on upcoming inflation figures, former senior economist at Banxico Alberto Armijo told MNI.

"While the dovish bias in the statement is more noticeable, leaving the door open for cuts soon, there are still some elements that could be considered to postpone the cut in March," Armijo said in an interview.

Keep reading...Show less