Banxico Set to Pause Cuts After Two-Year Easing

Mexico’s central bank is expected to hold its benchmark interest rate unchanged, pausing an easing cycle that has lowered borrowing costs from double-digit levels in Latin America’s second-largest economy.

Banxico, as the bank is known, is expected to hold its key rate at 7% on Thursday, a move forecast by all 27 economists surveyed by Bloomberg. The halt in cuts reflects concern over persistent price pressures, particularly core inflation, which remains above the upper limit of the bank’s target range.