Central Banks
Mexico’s Central Bank to Hold Key Rate in December, Governor Tells El Financiero
- Rodriguez says Banxico in conditions to start discussing cuts
- Coming rate cuts to be “gradual,” not necessarily continuous
Victoria Rodriguez, speaks during an interview at the Association of Banks of Mexico convention on March 17
Photographer: Alejandro Cegarra/BloombergThis article is for subscribers only.
Mexico’s central bank will reduce its key interest rate “gradually” and the first cut won’t come until next year, governor Victoria Rodriguez Ceja told newspaper El Financiero, ruling out a reduction in the bank’s December meeting.
“The improvement in the inflationary outlook that we are foreseeing may allow to start discussing the possibility of adjusting our reference rate downward already in the next meetings,” Rodriguez said in an interview published Monday, adding that a reduction “wouldn’t necessarily mean a continuous easing cycle.”