Reported 9 months ago
Mexican Central Bank Governor Victoria Rodriguez indicated that the peso's volatility influenced the decision to maintain rates at 11%, considering its impact on inflation and future rate cuts. Factors such as the recent acceleration of inflation and the bank's efforts to combat it have created room for potential rate decreases. Despite the peso's depreciation following the election, ongoing disinflation progress and monetary policy restrictions could prompt rate cuts in upcoming decisions. Rodriguez highlighted that reducing rates does not imply a lack of restraint, citing reduced exchange rate volatility post-election.
Source: YAHOO