Banker Who Cut Rates to 7.5% Despite 4.26% Inflation Reveals Bold Strategy
Key Points
- Mexico's central bank cut interest rates to 7.5% despite inf...
Mexico's central bank just pulled off what most economists would call either brilliant or completely bonkers: cutting interest rates while inflation sits comfortably above their target. On Friday, Banxico slashed their benchmark rate by 25 basis points to 7.5% - the lowest since May 2022 - while core inflation cruises at 4.26%, well above their 3% sweet spot.
Think of it like turning down the thermostat while your house is already warmer than you'd like. The logic? Sometimes you need to prioritize keeping the lights on over perfect temperature control.
**When Numbers Don't Add Up (But Maybe ...
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