| The Bank of Maxico said it will assess the further cuts to the interest rate, according to the minutes of central bank’s meeting released on Thursday. On September 25, the central bank cut its benchmark interest rate to 7.5% from 7.75%, its lowest level since May 2022. This was the 10th straight rate cut by the bank. Banxico, as the central bank is known, said it took into account the behavior of the exchange rate, the weakness of economic activity, and the possible impact of changes in trade policies worldwide. Deputy Governor Jonathan Heath was the sole member of the five-member board who voted to hold September’s interest rate at 7.75%. Deputy Governor Jonathan Heath was the sole member of the five-member board who voted to hold September’s interest rate at 7.75%. Heath highlighted the inflationary risks that could result from Mexico’s proposed tariffs on Chinese imports, including cars, textiles and steel, according to the minutes. Annual core inflation, which is considered a reliable gauge of price trends because it strips out volatile food and energy prices, quickened in September, reaching 4.28%, official data from Mexico’s statistics agency showed on Thursday. Headline inflation climbed to 3.76% in the year through September, from 3.57% in August. Although the inflation rates fall within Banxico’s target range of 3%, plus or minus a percentage point. |
Bank of Maxico to re-assess further cuts to the interest rate
