LatinNews Daily - 20 December 2024

*Mexico’s central bank (Banxico) has lowered its benchmark interest rate by 25 basis points to 10%, in its fourth consecutive rate cut and fifth this year. In a statement, Banxico noted that annual inflation fell to 4.55% in November, with the closely watched core inflation rate, considered a good indicator for inflation trends, also continuing to fall. Banxico stated that inflation forecasts for the end of the year had also been revised down, whereas those for the end of next year remained stable. “In view of the progress on disinflation, larger downward adjustments could be considered in some meetings, albeit maintaining a restrictive stance,” the statement said. Banxico added that the possibility of the US implementing tariffs on Mexican imports, as President-elect Donald Trump has threatened, “has added uncertainty to the outlook”, noting that such a move would generate inflationary pressures on both sides of the border.