Core inflation a stiff 'challenge' in Mexico as economy faces growing risks

Core inflation a stiff 'challenge' in Mexico as economy faces growing risksReducing Mexico's stubborn core inflation, running at 3.8 percent, is a challenge for the central bank, its governor told Reuters on Thursday, after it cut its key lending rate for the first time since June 2014. The Bank of Mexico (Banxico) cited slowing inflation and increasing slack in an economy hampered by global trade tensions, as reasons for making the cut, fueling expectations that further monetary policy easing could be on the way. "We will pay attention to new information and uncertainty over the coming weeks before evaluating monetary policy actions," said Alejandro Diaz de Leon, governor of the central bank since late 2017.


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