Banco de México cut its target rate by a quarter point, a move that most analysts had not expected. Governor Victoria Rodríguez Ceja said the Governing Board had been weighing a punctual adjustment since the previous decision.
Rodríguez Ceja said the board resumed that discussion in the current decision. It was based, she said, on a rigorous assessment of the inflation outlook and its determinants, and the board considered the adjustment appropriate.
Analysts had expected a hold
Most analysts had expected no change to the target rate. A group of experts, drawing on the minutes of the previous decision, had anticipated a quarter-point cut.
The governor said inflation had evolved in line with the central bank’s forecasts.
Signals from earlier in the year
The governor’s remarks do not address that claim.
Related: Brazil's central bank halts rate cuts, holds Selic at 13.75%
Source: Bank of Mexico
