Business · Economy · 47 mins ago
Banxico official says rate cut does not signal further reductions
Mexico’s central bank cut its key interest rate from 6.50% to 6.25% on November 5.
Deputy governor Omar Mejía Castelazo said the move was a one-time adjustment, not a new series of cuts.
He said the decision reflected progress in bringing inflation down and current economic conditions.
The bank still considers its policy restrictive enough to help inflation move toward its target.
Keeping the rate at 6.25% also gives policymakers time to assess the effects of earlier decisions and risks to inflation.
Mejía Castelazo said the rate should stay at this level for a prolonged period, but did not give a specific timeframe.
Banxico deputy governor Omar Mejía Castelazo said a recent interest rate cut does not mark the start of a new series of reductions.
The central bank cut its benchmark rate by 25 basis points on November 5, from 6.50% to 6.25%.
Mejía said the move calibrated monetary policy to current economic conditions and progress in reducing inflation.
He said Banxico considers it appropriate to keep the rate at 6.25% for a prolonged period, without specifying a duration.
- Who
- Omar Mejía Castelazo, deputy governor of Mexico’s central bank, Banxico.
- What
- He said a 25-basis-point rate cut was a one-off adjustment, not the beginning of a new series of reductions.
- When
- He spoke on Wednesday after Banxico’s November 5 rate decision.
- Where
- In an appearance on Banorte’s Norte Económico podcast.
- Why
- He said the cut reflected current economic conditions and progress in reducing inflation, while preserving a restrictive monetary stance.
This story does not have two clearly opposing sides.
Banxico cut its benchmark interest rate by 25 basis points, from 6.50% to 6.25%.
Mejía Castelazo said on Banorte’s Norte Económico podcast that the cut was not the start of a new series of reductions.
- Rate cut
- 25 basis points
- Previous benchmark rate
- 6.50%
- Current benchmark rate
- 6.25%
- Rate decision date
- November 5
- Speaker
- Omar Mejía Castelazo, Banxico deputy governor
What people are saying
We are not facing the start of a new sequence of reductions.
After this one-off adjustment, we consider it appropriate to keep the rate at the level reached for a prolonged period.