November 11, 2019 / 7:02 PM / a month ago

Mexican central bank expected to cut rates again on Thursday: Reuters poll

MEXICO CITY (Reuters) - Mexico’s central bank will likely cut its benchmark lending rate for the third meeting in succession this week given that inflation is in check and the economy is stagnating, a Reuters poll showed on Monday.

Ten out of 14 bank and brokerage analysts surveyed expect the Bank of Mexico to lower the rate by 25 basis points to 7.5%, while the other four forecast a cut of 50 basis points.

Mexico’s economy grew by just 0.1% between July and September, according to a preliminary estimate, after narrowly avoiding a recession in the first six months of 2019.

At the same time, annual inflation is currently running at around 3.0%, the rate targeted by the central bank.

A rate cut could also maintain the monetary policy stance Mexico has adopted relative to the U.S. Federal Reserve, which at the end of October cut rates for the third time this year.

The Mexican central bank will publish its latest decision on Thursday, Nov. 14 at 1.00 p.m local time. (1900 GMT).

Reporting by Miguel Gutierrez in Mexico City and Gabriel Burin in Buenos Aires; Editing by Steve Orlofsky

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