Mexico Finance Minister Sees Rate Cuts as Early as Year End
- Meade comments in interview in Mexico City With Bloomberg TV
- Banxico may raise rates a couple times before shift to cuts
Jose Antonio Meade stands for a photograph at the National Palace in Mexico City on June 21.
Photographer: Yael Martinez/BloombergThis article is for subscribers only.
Mexico is probably near the end of its cycle of interest-rate hikes and may be able to lower borrowing costs as early as year end, Finance Minister Jose Antonio Meade said.
The central bank is likely to raise borrowing costs a couple more times, before it starts unwinding that position as inflation slows to less than 4 percent by the end of the year or early 2018, Meade said in an interview Wednesday. Current inflation of more than 6 percent is due to a surge in gasoline prices and a plunge in the peso at the beginning of the year and won’t last, Meade said.