LatinNews Daily - 11 August 2023

*Mexico’s central bank (Banxico) has announced that it is maintaining its benchmark interest rate at 11.25% for the third consecutive occasion. This is in line with Banxico’s announcement in May that the rate would be held for a prolonged period in order to reduce inflation to the target of 3%. The announcement comes as Mexico’s national statistics institute (Inegi) recently released the latest figures for the consumer price index (INPC), which show that annual inflation decreased from 5.06% in June to 4.79% in July - its lowest level since March 2021. Core inflation similarly slowed from 6.89% in June to 6.64% in July. While Banxico’s statement highlighted that both kinds of inflation “remain elevated”, it said that “monetary policy remains on the necessary trajectory to achieve the convergence of inflation to its 3% target within the forecast horizon”.