[Opinion] Angel Maass: Inflation Upwards and Banxico at the Crossroads: Cut Rates or Pause?

El Financiero

Lean Right

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Inflation in Mexico once again upset the markets: in May 2025 it reached 4.42 per cent per year, again exceeding the Bank of Mexico’s target range. The underlying – most persistent – was 4,06 per cent. This occurs in the middle of a cycle of cuts to the benchmark rate, which is already 8.5 per cent after three consecutive declines. Now, with the next monetary policy decision in sight, the Governing Board faces a thorny dilemma: should it continu…

Expansion

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Sub-Governor of the Central Bank of Mexico ( Banxico ) Jonathan Heath believes that most of the governing board will vote at the end of the month to lower the key rate by 50 basis points (pb) although, in his opinion, cuts of that magnitude should be paused and the data evaluated.Inflation exceeded the official 3% +/- percentage point in May after the overall price index accelerated to 4.42% its highest level since November, while underlying inf…