Analysts are revealing shock at a choice by Mexico’s main bank to cut interest rates on the verysame day that authorities figures revealed a sharp increase in domestic inflation
MEXICO CITY — Analysts revealed shock Thursday at a choice by Mexico’s main bank to cut interest rates on the verysame day that authorities figures revealed a sharp increase in domestic inflation. Almost without exception, main banks raise interest rates to make cash more costly, in order to prevent rate boosts.
But in a choice Thursday, the Bank of Mexico cut interest rates by 0.25% to 10.75%, even however inflation increased by over one percent to 5.57% in July. For most of this year, inflation hasactually been moving evenmore away from the main bank’s goal of 3%.
The bank warranted the move, stating t