Mexican Central Bank Faces Inflation Concerns Amid Rate Cut

Jonathan Heath, Deputy Governor of the Mexican Central Bank, cautioned that a recent rise in headline inflation could affect other prices. He also viewed the central bank's recent interest rate cut from 11% to 10.75% as premature, given the inflationary pressures.

Jonathan Heath, Deputy Governor of the Mexican Central Bank, has expressed concerns in a recent interview about the potential impact of rising headline inflation on other prices in the economy.

He warned that the monetary authority's latest decision to cut the interest rate to 10.75% from 11% might have been premature.

The rate cut, decided in a split vote last week, reflects internal divisions within the bank regarding how to address inflationary pressures effectively.

(With inputs from agencies.)