Mexican Inflation Seen Slowing in February

• Mexico's inflation rate likely eased in February, a Reuters poll showed on Monday, March 4, reinforcing bets that the country's central bank could lower its key benchmark interest rate as soon as this month.
• The closely watched core inflation index, which strips out volatile energy and food prices, is seen dropping to 4.62% in the month, its lowest level since June 2021. Rates, however, are still above the central bank's target range of 3%, plus or minus one percentage point.
• Last month, the monetary authority, also known as Banxico, again held the benchmark interest rate at a historic high of 11.25% but hinted that a rate cut could be on the table in upcoming meetings.
• A recent poll of economists by financial group Citibanamex showed that most estimate an initial rate cut to happen when Banxico's board meets on March 21.

 (Source: Reuters)