📝Core Inflation Complicates Banxico's Outlook: Scotiabank

Banco de México is widely expected to cut its overnight rate by another 50bps on Thursday. Our Mexican economists agree. That would take the rate down by a cumulative 325bps since rate cuts started in March of last year. Guidance provided in the last statement in May was that "looking ahead it could continue calibrating the monetary policy stance and consider adjusting it in similar magnitudes" of 50bps a clip. Complicating the outlook may be that headline inflation and core goods inflation have been rising of late (chart 5). - Scotiabank