MNI BRIEF: Economic Weakness Helping Inflation-Banxico Minutes

Most Central Bank of Mexico board members agree that economic weakness would continue contributing to lower inflation, minutes of the latest meeting released Thursday showed.

"All members considered that the balance of risks for the trajectory of inflation within the forecast horizon remains biased to the upside. However, most members mentioned that said bias is less pronounced than that faced between 2021 and 2024," the document said.

The Banxico inflation target is 3% with a range of 1 percentage point in each direction. Banxico cut rates by 25 basis points to 7.25% this month, with deputy governor Jonathan Heath dissenting to hold at 7.50%.

"A premature monetary easing would bring reference rates to neutral levels in an environment of still elevated inflation, with the consequent regressive effects on the general population," Heath argued in the minutes. (See MNI INTERVIEW: Banxico Nearing End Of Easing Cycle - Zaga)