Banxico reported on Thursday that decided to maintain its reference interest rate for the fifth consecutive time at a historical maximum of 11.25%, as the market expected, anticipating that it will remain at that level for “some time” because there are challenges for inflation despite its deceleration.
In the previous statement, the central bank said that it would maintain the rate at its current level (11.25%) for “ extended time “.
“We do not see it (a rate cut) in the remainder of this year (December),” Rodríguez said in an interview published on Monday in the newspaper El Financiero, in which he also detailed that the downward adjustments will be when the macroeconomic conditions allow it.
However, the governor did not rule out that Banxico could lower the rate in the future. “The improvement in the inflation outlook that we are anticipating could allow us to begin discussing in future meetings the possibility of adjusting our reference rate downwards,” she stated.
Rodríguez clarified that, if the reductions occur, they “would be gradual” and that “we would not necessarily be facing a cycle of continuous declines.”
The next meeting of the Governing Board, the last of 2023, will be on December 14.
With information from Reuters