Home » Mexico’s Inflation Rate Expected to Decrease in February, Possible Interest Rate Cut on the Horizon

Mexico’s Inflation Rate Expected to Decrease in February, Possible Interest Rate Cut on the Horizon

by admin
Mexico’s Inflation Rate Expected to Decrease in February, Possible Interest Rate Cut on the Horizon

Mexico’s Inflation Rate Expected to Drop in February, Potential Rate Cut by Central Bank

A recent survey by Reuters suggests that Mexico’s inflation rate is likely to decrease in February, paving the way for a potential interest rate cut by the Bank of Mexico (Banxico) later this month. The survey, which polled 15 analysts, predicted that the annual headline inflation rate would stabilize at 4.42% in February, down from 4.88% in January.

The core inflation index, which excludes volatile energy and food prices, is also expected to fall to 4.62% for the month, its lowest level since June 2021. However, both rates would remain above Banxico’s target range of 3%, plus or minus one percentage point.

Banxico currently has the benchmark interest rate at a record high of 11.25%, but recent hints from the central bank suggest that a rate cut could be on the horizon. A survey of economists by Citibanamex revealed that most experts anticipate an initial rate cut to occur during Banxico’s board meeting on March 21.

In terms of monthly inflation, consumer prices in Mexico are projected to increase by 0.11% in February, with core inflation expected to be at 0.49%. Official inflation data for February will be released by the National Institute of Statistics and Geography (Inegi) on Thursday.

The potential decrease in inflation and the likelihood of an interest rate cut by Banxico have sparked speculation among analysts and investors, with many closely monitoring the central bank’s upcoming decision. Stay tuned for more updates on Mexico’s economic landscape.

See also  Azimut: positive net inflows of € 1bn in September, reached 15.3bn in the nine months of 2021

Information sourced from Reuters. Stay connected with us on Instagram for more news and updates.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy