LatinNews Daily - 05 January 2024

In brief: Mexico’s Banxico considers future rates cut

*Mexico’s central bank (Banxico) has indicated that it is considering reducing its benchmark interest rate, which has stood at its current level of 11.25% since March, this year. In recently released minutes from the latest meeting of Banxico’s governing board, which took place on 14 December, board members stressed the need for any such reduction to be “gradual” and “cautious” while noting it would continue to hold the interest rate at its current level for “some time” in order for inflation to converge to the target of 3%. They noted that the markets expect the first rates cut to occur in the second quarter of 2024. The majority of board members expect inflation to reach the target by the second quarter of 2025, stating that “the inflation outlook continues to imply challenges”.

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