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.
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.
(Reporting by Ana Isabel Martinez and Brendan O’Boyle; Editing by Emily Green)
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