The Bank of Mexico (Banxico) intends to proceed cautiously with further rate cuts, newly released minutes from its most recent policy meeting indicate.

Banxico’s rate-setting committee voted 4–1 on December 18 to reduce its policy rate by 25 basis points to 7%. The minutes of the meeting, published on January 8, detail the reasoning given by the sole dissenter, Jonathan Heath, who argued for rates to be held so the bank could evaluate the trajectories of both core and non-core inflation.

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