Experts split over wisdom of Mexico’s 25bp rates cut
Economist says policy committee’s sole dissenter was right to vote to hold
The Bank of Mexico (Banxico) cut rates by 25 basis points on August 7, as analysts had been expecting.
The monetary policy committee approved the decision by four votes to one. Jonathan Heath, a former Banxico deputy governor, was the sole dissenter, arguing that the rate should be held. Heath had dissented in the same way at the bank’s previous meeting in June, arguing that core inflation was too high and policy should remain restricted.
Headline inflation in Mexico was 3.51% year on year in
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