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Mexico Has Room Ahead for Rate Cuts, Central Banker Says

  • Inflation may allow a cut after the first quarter, Heath says
  • Not clear yet if another reduction is possible next month
Updated on

Mexico’s central bank should be able to resume its cycle of interest rate reductions after the first quarter of 2021 once the slowdown of inflation is confirmed, Deputy Governor Jonathan Heath said.

“I definitely think that this easing cycle has not necessarily come to an end, which means there should be room up ahead,” Heath said in a telephone interview on Friday. “There is a possibility after April, May -- and inflation numbers, they start coming down quite fast.”