Central Banks
Mexico Holds Record Rate After Prices Accelerated Last Month
- Borrowing costs held at 11.25% for seventh straight meeting
- Slowing core prices, growth may open room for future cuts
A shopper in La Merced market in Mexico City, Mexico, on Thursday, Feb. 8, 2024.
Photographer: Victoria Razzo/BloombergThis article is for subscribers only.
Mexico kept interest rates unchanged at a record high for the seventh straight meeting Thursday while signaling a growing openness to weighing a cut in the coming months. Earlier, inflation accelerated for the third straight month in January.
Banxico, as the central bank is known, held its key interest rate at 11.25%, as forecast by 26 of 30 economists in a Bloomberg survey. Four analysts expected a quarter-point cut as core inflation, which the bank watches closely, had eased steadily and the economy has shown signs of a slowdown.