Multiple Banxico members call for caution around future rate policy

Multiple members of the Bank of Mexico's governing board called for caution as the central bank of Latin America's no. 2 economy eyes possible rate cuts in the new year, minutes from its last monetary policy meeting showed Thursday. The minutes from the December 14 meeting showed the board agree that Mexico's benchmark interest rate should be held at its current all-time high for "some time" in order to bring inflation to target.

Multiple members of the Bank of Mexico's governing board called for caution as the central bank of Latin America's no. 2 economy eyes possible rate cuts in the new year, minutes from its last monetary policy meeting showed Thursday.

The minutes from the December 14 meeting showed the board agree that Mexico's benchmark interest rate should be held at its current all-time high for "some time" in order to bring inflation to target. Four members said caution must be exercised when evaluating or communicating rate cuts, with a fifth member considering that lowering the rate could be begin to be discussed in the bank's next meetings.

Most central bank board members agreed that inflation's outlook continues posing challenges and warned about the possibility of greater cost-related pressures. The Bank of Mexico, known as Banxico, unanimously held its key rate steady at 11.25% for a sixth straight time at its December meeting.