MEXICO CITY (EFE).— The Bank of Mexico considered that the “inflationary outlook in Mexico has been improving,” which is why it anticipated that it will continue with interest rate cuts.
“Going forward, (the central bank) anticipates that the inflationary environment will allow additional adjustments to the reference rate. “It will take into account the prospect that global shocks will continue to fade and the effects of weak economic activity,” he said in a document.
Despite the decision, the Governing Board “warned that it still faces challenges” such as inflation, highlighting that the rise in prices of services “continues to exhibit persistence.”
Furthermore, he considered that the balance of risks of the expected trajectory of inflation “still remains biased upwards.”
Even so, “the majority believed that general inflation is expected to resume its downward trend and that underlying inflation will continue on its downward path.”
The minutes are published one day after it was announced that the inflation rate in Mexico fell to 4.58% in September, marking two months of decline after reaching its highest value in 14 months, 5.57%, in July.
This was the last decision of the central bank under the Presidency of Andrés Manuel López Obrador (2018-2024), who appointed four of the five members of the current Governing Board.
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