Central Banks
Mexico Keeps 11.25% Rate as Inflation Hovers Above Target
- It’s the sixth time the bank has held its rate this year
- Forecasters are saying a series of cuts could come in 2024
Shoppers at a market in Mexico City, Mexico. Inflation accelerated to 4.32% in November from 4.26% in October.
Photographer: Jeoffrey Guillemard/BloombergThis article is for subscribers only.
Mexico kept borrowing costs at a record high for a sixth straight meeting and raised its inflation forecasts for much of 2024 on Thursday, causing the peso to reverse losses as traders saw diminished odds of a quick series of cuts early next year.
Banxico, as the central bank is known, held its key interest rate at 11.25%, as forecast by 24 of 25 economists in a Bloomberg survey. One analyst expected a quarter-point cut to 11%.