Key insights
- Mexican inflation eased to 4.45% in April, below forecasts. Banxico is expected to announce its monetary policy decision, with markets anticipating a potential final 25-basis-point rate cut. While seemingly localized, US equities could be marginally affected as lower Mexican rates could strengthen the dollar, creating headwinds for US exporters. The impact is limited due to Mexico's relatively small influence on overall US economic activity.
Investing.com -- Mexico’s annual inflation rate declined to 4.45% in April from 4.59% in March, marking the first deceleration this year, according to official data released Thursday.
The figure came in below the 4.50% increase forecast by economists in a Reuters poll.
The core inflation index, which excludes volatile food and energy prices, slowed to 4.26% from 4.45% in March, slightly below the expected 4.27% increase.
The central bank, known as Banxico, is set to announce its monetary policy decision Thursday. In March, the bank unexpectedly reduced its benchmark interest rate by 25 basis points to 6.75%.
Markets anticipate Banxico will deliver a final 25-basis-point cut to the benchmark rate, potentially ending the monetary easing cycle that started more than two years ago.
Inflation remains above Banxico’s target of 3%, with a tolerance range of one percentage point above or below that level.
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