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MNI WATCH: Banxico Set For Fourth Consecutive 25BP Rate Cut

The Central Bank of Mexico's board will make its policy decision this Thursday.

MNI (BRASILIA) - The Central Bank of Mexico is widely expected to reduce its overnight interbank interest rate by 25 basis points to 10.00% on Thursday, marking its fourth consecutive rate cut, with a minority of analysts seeing a 50 bp cut as a real possibility.

The benign trajectory of core inflation is the main argument among Banxico's board members for continuing rate cuts, along with weak economic activity. Mexico's INPC annual inflation stood at 4.55% in November, down from 4.76% in October, while core inflation fell to 3.58%, continuing its downward trend.

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MNI (BRASILIA) - The Central Bank of Mexico is widely expected to reduce its overnight interbank interest rate by 25 basis points to 10.00% on Thursday, marking its fourth consecutive rate cut, with a minority of analysts seeing a 50 bp cut as a real possibility.

The benign trajectory of core inflation is the main argument among Banxico's board members for continuing rate cuts, along with weak economic activity. Mexico's INPC annual inflation stood at 4.55% in November, down from 4.76% in October, while core inflation fell to 3.58%, continuing its downward trend.

Keep reading...Show less