LatinNews Daily - 27 September 2024

*Mexico’s central bank (Banxico) has announced it is lowering its benchmark interest rate by 25 basis points from 10.75% to 10.50%. This is the second consecutive rate cut, following a reduction that took many analysts by surprise in August. Four of Banxico’s board members voted for the rate cut, while the deputy governor, Jonathan Heath, voted to maintain the rate at 10.75%. In a statement, Banxico noted that annual inflation had decreased from 5.57% in July to 4.66% in the first two weeks of September with the core inflation rate, which excludes volatile items and is considered a good indicator for inflationary trends, also dropping from 4.05% in July to 3.95% in the first half of September. “Looking ahead, the board expects that the inflationary environment will allow for further benchmark rate adjustments,” the statement said, while noting that “a restrictive monetary policy stance” was still necessary.