*Mexico’s central bank (Banxico) announced it was holding interest rates at 11%, for a second consecutive time, citing ongoing inflationary pressure. This follows a rate cut of 25 basis points in March – the first alteration in a year. In a press release, Banxico highlights the fact that annual inflation increased from 4.65% to 4.78% from April to the first half of June. It maintained its forecast of 4.0% inflation for end 2024 although it revised up its core inflation forecast to 3.9% for 2024,5 up from 3.8%. Nonetheless, it expects inflation to reach its 3% target by the end of 2025. The decision to hold interest rates was approved with a 4-1 vote, with one dissenting member favouring a cut of 25 basis points to 10.75%.
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LatinNews Daily - 28 June 2024
In brief: Mexico’s Banxico holds interest rates again
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