INSUBCONTINENT EXCLUSIVE:
Bank of America Securities (BofA) predicts a 0.25 percentage point reduction, lowering the rate to 10.50%.This move marks a significant
It continues the normalization cycle that began in March 2024
The cumulative cut will reach 0.75 percentage points since the peak rate of 11.25%.BofA experts believe conditions are ripe for this
(Photo Internet reproduction)Several factors support this rate cut
The core inflation rate has been steadily declining, reaching 4% in August after 19 consecutive months of decrease
BofA Securities warns that GDP may continue to moderate
They cite concerns about reduced investments due to constitutional reforms and expected fiscal consolidation.The global economic context
They expect the policy rate to reach 10% by year-end and 8.25% by the end of 2025
However, they acknowledge the possibility of faster cuts.Banxico Set to Cut Interest Rate Amid Economic ShiftsOther experts offer similar
inflation, might not be reached until 2026.These projections highlight the careful balance Banxico must strike
They must address current economic challenges while preparing for future stability
The upcoming decision will be a crucial step in this ongoing process.
