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Exclusive-Bank of Mexico rate cuts sends wrong message, says deputy governor Heath

Reuters
Exclusive-Bank of Mexico rate cuts sends wrong message, says deputy governor Heath

By Ana ‌Isabel Martinez

MEXICO CITY, Nov 12 (Reuters) - The Bank ​of ‌Mexico's recent interest rate ‌cut sows confusion and sends the wrong ‌message as the inflation outlook remains skewed to the upside and the US ⁠Federal Reserve seems primed ‌to keep hiking ⁠its key rate, Deputy Governor ​Jonathan Heath said on Thursday.

Heath, whose eight-year term ​on the central ​bank's ‌board ends in December, voted ​last week ⁠to keep the benchmark ‌rate unchanged. ​The five-member ​board at Banxico, as the bank is known, ultimately voted 3-2 to ‌cut rates by 25 basis points to 6.25%.

(Reporting ‌by ​Ana Isabel Martinez; Additional reporting by Noe Torres; Writing by Anthony Esposito; ‌Editing by Iñigo Alexander)