April 28 (Reuters) – The Bank of Mexico expects inflation will soon resume a gradual decline towards the bank’s 3% target despite a recent jump in the prices of some fruits and vegetables, the central bank’s governor, Victoria Rodriguez, said on Tuesday.
In an address before a Senate committee, Rodriguez said the bank’s board was close to finish a rate cutting cycle that began in early 2024, and that the board would consider making one last cut at its next monetary policy meeting in May. Â
Last month, the board lowered the bank’s benchmark interest rate by 25 basis points to 6.75% in a contentious 3-2 vote.
Minutes from the bank’s March meeting showed the bank’s board is deeply divided as it weighs fears of resurgent inflation and Middle East conflict against the needs of a sluggish economy.
Mexico’s annual inflation rate slowed in the first half of April, albeit less than had been expected, to 4.53%, after jumping in March. The central bank targets inflation at 3.0%, with a range of tolerance of plus or minus one percentage point.Â
(Reporting by Ana Isabel Martinez and Brendan O’Boyle; Editing by Emily Green)
