INSUBCONTINENT EXCLUSIVE:
This marks the third consecutive rate cut of the same magnitude.The decision comes after a pause during the summer due to inflationary
October and in the wake of the U.S
spiked to 20.53 pesos before settling around 20.50 pesos, reflecting a 0.04% peso appreciation
signaling potential future rate adjustments based on the inflationary environment
The bank revised its inflation forecasts upward for the short term due to supply shocks.However, it still expects general inflation to reach
its target by the fourth quarter of 2025
The bank cited several upside risks to inflation.These include persistent core inflation, currency depreciation, cost pressures, climate
effects, and geopolitical conflicts
Downside risks involve lower economic activity, reduced cost pressure pass-through, and less impact from currency depreciation.Banxico
acknowledged an improving inflation outlook despite recent global shocks
affecting non-core inflation and expectations of their dissipation
The central bank noted that while a restrictive monetary stance is still necessary, the evolving inflation picture allows for some
easing.Banxico also observed stronger economic growth in the third quarter of 2024 compared to the previous three quarters, though it
growth in a complex global environment
The bank continues to navigate challenges while maintaining its commitment to price stability and economic well-being.
