Mexico's Economic Outlook: Balancing Growth and Inflation

Mexico's central bank governor, Victoria Rodriguez, expressed cautious optimism about the nation's economic trajectory, predicting moderate growth despite persistent slack conditions. Speaking on a local radio station, Rodriguez noted that these slack conditions significantly influence their inflationary outlook.

In a move signaling careful optimism amid economic challenges, the Bank of Mexico cut the benchmark interest rate by 25 basis points, bringing it to 7.25%, its lowest since May 2022. However, the central bank's cautious tone indicates potential risks from lingering core inflation.

Rodriguez mentioned that the bank's board members are in the process of revising their gross domestic product and inflation forecasts, which will be detailed in the upcoming quarterly report at November's end. The recent rate adjustment was anticipated by markets, underscoring ongoing vigilance against economic uncertainties.