MEXICO CITY, Nov 27 (Reuters) – Mexico’s central bank could adjust its interest rates by February or March 2024 if inflation continues to drop, board member Jonathan Heath said on Monday, added that a decline in core prices is especially key to hitting inflation targets.
In an interview with local station Imagen Radio, Heath said the central bank intends to maintain tight monetary policy stance for a long time and that any early rate cuts should be seen as slight adjustments, not the start of a lowering cycle.
One or two rate cuts may come, but very gradually and with great caution. The central bank has kept rates at a historic high of 11.25% since March 2023.
Twelve-month headline inflation in Latin America’s second-largest economy landed at 4.26% in October, still above the central bank’s target of 3%, plus or minus one percentage point.
Heath said a large set of risks jeopardized efforts to tame inflation, and if they materialized, it would be difficult for inflation to shrink to the target by end-2024 or early 2025. Mexico’s economy could “easily” close the year with growth of 3.4% or 3.5%.
Kitco / ABC Flash Point News 2023.
The Rothschild family controls almost all the privately owned central banks in the world. Except those in Cuba, Russia, Syria and North Korea for example.