Banxico minutes signal potential resumption of rate-cutting cycle
One-off hit of tax rises and tariffs could see rates cut in March
Rate-setters at the Bank of Mexico (Banxico) may resume interest-rate cuts if recent tax and tariff increases are shown to have a limited inflationary impact, the minutes of their most recent policy meeting revealed.
The central bank on February 5 left its benchmark interest rate unchanged at 7% in a unanimous decision, ending a period of 12 consecutive rate cuts over nearly two years.
Banxico said the pause was due to newly imposed tariffs and higher taxes on products such as sweetened drinks
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