( ) -q-24- UNDATED (Correspondent Jeremy House) “energy and food.” Analysts are expressing shock at a decision by Mexico’s central bank to cut interest rates on the same day that official figures showed a sharp rise in domestic inflation. [CutID: <Cuts> MEXICO-INT-RATES-house-q-FRIam.mp3 Time: 24s Title: MEXICO-INT-RATES-house-q-FRIam Out-cue: energy and food] TAG: Correspondent Jeremy House reporting. Inflation […]
Audio
With inflation rising, Mexico’s central bank cuts interest rates
( ) -q-24- UNDATED (Correspondent Jeremy House) “energy and food.”
Analysts are expressing shock at a decision by Mexico’s central bank to cut interest rates on the same day that official figures showed a sharp rise in domestic inflation.
[CutID: <Cuts> MEXICO-INT-RATES-house-q-FRIam.mp3
Time: 24s
Title: MEXICO-INT-RATES-house-q-FRIam
Out-cue: energy and food]
TAG: Correspondent Jeremy House reporting. Inflation has been getting further away from the central bank’s objective of 3%.
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VERBATIM: Central banks usually raise interest rates to make money more expensive, in order to discourage price increases. But, the Bank of Mexico CUT interest rates by a quarter-percent to 10.75%, even though inflation rose by over one percent to 5.57% in July. The bank justified the move, saying prices hikes occurred in more volatile sectors like energy and food.