, Columnist
Latin America’s Central Banks Should Start to Cut Rates
The Bank of Mexico decided to keep interest rates unchanged, but the case for lower borrowing costs is getting stronger.
Nearing the end of cycle.
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Having reached the end of a period of major interest rate increases and with clear signs that inflation has peaked, Latin America’s central banks are now assessing when to start cutting rates. It will be an equally delicate process — and it is equally necessary.
On Thursday, the Bank of Mexico, known as Banxico, announced that it will keep rates unchanged “for an extended period.” It is now likely to be in a wait-and-see mode for several months after completing a record 7.25-percentage-point increase over two years, to the current 11.25%.