Nomura Predicts Mexico Central Bank to Cut Rates This Week

Mexico’s central bank will cut interest rates 25 basis points to 4.25 percent this week following the global coordinated response to Europe’s debt crisis, Nomura Securities Inc. said.

“The door has been opened for the central bank of Mexico to cut its policy rate,” New York-based strategist Benito Berber wrote in an e-mailed report. “The one obstacle for Banxico to cut was the weakness of the Mexican peso.”

To contact the reporter on this story: Veronica Navarro Espinosa in New York at vespinosa@bloomberg.net

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