MEXICO CITY, Dec. 19 (Xinhua) -- The Central Bank of Mexico (Banxico) announced its fourth consecutive interest rate cut on Thursday, lowering the overnight interbank interest rate target by 25 basis points to 10.0 percent.
The decision, made unanimously by Banxico's Governing Board, reflects expectations for a continued decline in inflation.
"Looking ahead, it anticipates that the inflationary environment will allow for further reductions in the reference rate," Banxico said in its monetary policy report.
The central bank said that as disinflation progresses, it could consider larger rate cuts in future meetings while maintaining a restrictive monetary stance.
Mexico's general inflation dropped from 4.76 percent to 4.55 percent between October and November, with both general and core inflation indicators projected to continue their downward trajectory.
The central bank forecasts an average inflation rate of 4.6 percent for the fourth quarter this year.
It also highlighted global risks that could affect its projections, including potential reversals in global economic integration, heightened geopolitical tensions, prolonged inflationary pressures, and increased volatility in financial markets. ■
