Bank of Mexico rate cut sends wrong message, says deputy governor Heath
TLT•Deputy Governor Jonathan Heath said the Bank of Mexico’s 25-basis-point rate cut sends the wrong message as inflation risks remain skewed to the upside and the U.S. Federal Reserve seems set to keep hiking rates.
1. Heath criticizes rate cut
Heath voted to keep the benchmark rate unchanged last week, but the five-member board voted 3-2 to cut it by 25 basis points to 6.25%. He said the decision sows confusion while the inflation outlook remains skewed to the upside and the U.S. Federal Reserve seems primed to keep hiking its key rate.
