Bank of Mexico Deputy Governor Sees Rates on Hold for Longer Than Expected
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Bank of Mexico deputy governor sees rates on hold for longer than expected
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Bank of Mexico Deputy Governor Jonathan Heath said on Friday the benchmark interest rate is likely to remain unchanged for longer than expected by markets, noting it would likely stay put at 11% at the May policy meeting and that the June decision would be data dependent. Speaking to Reuters on the sidelines of the International Monetary Fund and World Bank spring meetings, Heath underscored the importance of waiting until service sector inflation demonstrates a clear downward trajectory, suggesting the possibility of two to four rate cuts this year depending on evolving economic conditions. "Either we meet our inflation target and maybe we could cut, or we don't meet our inflation target and we don't cut," Heath said.