Banxico Governor Says Rate Cut Was Under Discussion Since September

Banxico rate cut: Governor Victoria Rodríguez Ceja said the board had been weighing a quarter-point reduction in the target rate since September, based on a rigorous assessment of the inflation outlook, as inflation evolved in line with the central bank's forecasts.

Banxico rate cut, Digi Mart USA News (Mexico): Victoria Rodríguez Ceja, governor of the Bank of Mexico, said the Governing Board had been discussing the possibility of lowering the target rate by a quarter point since its monetary policy decision in September.

In an interview with El Financiero, she said the matter had been under consideration given the inflationary environment the country is facing. “In this decision we resumed that discussion based on a rigorous evaluation of the inflation outlook and its determinants, and we considered it appropriate to implement this adjustment,” she said.

Most analysts had expected no change to the target rate, but a group of experts did anticipate the quarter-point cut. Rodríguez Ceja explained the reasons behind the decision and said inflation had evolved in line with the Banxico forecasts.

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