Mexico’s headline inflation rate dropped to a 32-month low of 4.3% y/y in October, but the fresh rise in services inflation will alarm officials at Banxico. We doubt this will prompt a restart to the tightening cycle – interest rates are likely to be left unchanged later today. But there is a growing risk of rate cuts starting later and being even more protracted than we currently anticipate.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.