According to Banxico, there are still three dates left for meetings and announcements of monetary policy decisions in the remainder of the year: September 26, November 14 and December 19.
“As we see progress, it is very likely that this opportunity (to lower rates) will be given. In the very short term, non-core inflation has risen, but we know that it is temporary, we know that it will go down, the only problem is that we do not know when and by how much. Core inflation has also been going in the right direction, it continues to go down,” commented the vice president of the IMEF Indicator Committee.
However, the challenge that the deputy governor sees is that the prices of goods have already fallen, and are even below 3% of their historical average, which reduces the margin for these prices to no longer fall further, so it will be necessary to break with the resistance of services, and thus pull down underlying inflation.
“As that happens, there will likely be, in the first instance, the possibility of making an adjustment one or two times,” Heath said.
