LatinNews Daily - 29 November 2024

*Mexico’s central bank (Banxico) has indicated that it anticipates making more cuts to the country’s benchmark interest rate. This comes despite an increase in headline inflation in October. In the recently released minutes from its 14 November monetary policy meeting, Banxico’s board stated that the nature of the shocks that have affected the non-core component and the expectation of their effects on headline inflation will dissipate in the coming quarters. The board also noted that core inflation, which excludes volatile items, is expected to continue to decline. “Although the inflationary outlook still merits a restrictive stance, its evolution implies that it is appropriate to reduce the degree of monetary tightening,” stated the board. Banxico lowered its interest rate for the third consecutive time this month to 10.25%.