Weekly Report - 28 March 2024 (WR-24-12)

MEXICO | Interest rates cut. The central bank Banco de México (Banxico) cut the benchmark interest rate by a quarter of a percentage point to 11% on 21 March. This marks the first time that Banxico has cut rates since March last year. It attributed the reduction to “a disinflationary process” while warning that “risks and challenges persist”. Indeed, the next day the national statistics institute (Inegi) reported that there was actually a slight uptick in annualised inflation to 4.48% in the first half of March, from 4.4% in February, which was down on January but followed three consecutive months of small increases.