INSUBCONTINENT EXCLUSIVE:
Banxico unanimously maintained its interest rate at 11.25% for the fourth consecutive time, aligning with expert predictions.In March, the
rate was raised to this level
Later, May, June, and August meetings also saw no change
This rate is the lowest since March 2021.Recently, the United States Federal Reserve also paused rate changes
It kept its rate between 5.25% and 5.50%.Amid these actions, the Mexican peso gained 0.32%, trading at $17.6142 per dollar.Banxico Keeps
(Photo Internet reproduction)The Governing Board left the market outlook unchanged
Governor Victoria Rodriguez Ceja said the rate will stay put for a while.Analysts see this as a restrictive move by the central
The Governor clarified there are no plans to cut the rate.Carlos Morales from Fitch Ratings agrees with the decision
He noted that inflation has been decreasing, now at 4.44%.However, core inflation still sits at a high 5.78%
Morales expects Banxico will keep the rate until early 2024
Then, cautious rate cuts may start.Background Banxico Interest RatesThis decision by Banxico aligns with the global trend of cautious
Central banks worldwide are hesitant to make big moves.Especially as the economic landscape remains uncertain
seems to prioritize inflation control over growth
Given the declining inflation rate, this approach may be working.Experts predict a steady rate until 2024, suggesting confidence in the
