Mexico delivers fourth straight rate cut as inflation slows
Hindustan TimesMexico cut interest rates for a fourth straight meeting Thursday as inflation is slowing back to target and the economy is losing momentum. Less than a month later, signs of slowing growth abound while both headline inflation and core readings are decelerating, though incoming US President Donald Trump and a more cautious Federal Reserve cloud the outlook. “Banxico decided for a quarter-point cut to maintain it’s smooth implementation of the easing cycle, while there are still significant risks ahead, including the new US administration and a shallower easing by the US Fed,” Alberto Ramos, chief Latin America economist at Goldman Sachs Group Inc., said by text before the decision. And while resurgent or sticky inflation has some central banks fine tuning monetary policy, or even ratcheting interest rates back up as in Brazil, only Colombia’s BanRep is forecast to cut borrowing costs more aggressively than Banxico in 2025.
History of this topic
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