Mexico's Inflation Rate Drops, Central Bank Expected to Cut Interest Rates Again
Mexico's 12-month headline inflation rate decreased in September, indicating a potential for further cuts in the central bank's benchmark interest rate. According to data from statistics agency INEGI, annual headline inflation in Mexico dropped to 4.58% last month, below the expected 4.62% and down from August's 4.99%. The core consumer price index, which excludes volatile energy and food prices, also slowed to 3.91% in the 12 months through September, compared to 4.00% in August.
The central bank has already cut its benchmark interest rate three times this year, bringing it down to 10.50%. With cooling prices, the bank's board may continue to lower borrowing costs. Two more monetary policy decisions are scheduled later this year, with polls suggesting the benchmark interest rate could end 2024 at 10% and drop to 8% in 2025.
In summary, Mexico's decreasing inflation rate could lead to further cuts in the central bank's interest rate, making borrowing cheaper for consumers and potentially stimulating economic growth. This news is important for investors and individuals looking to make financial decisions, as it could impact interest rates on loans, savings, and investments. Keep an eye on Mexico's monetary policy decisions for potential opportunities in the financial market.