Mexico cenbanker rules out June rate cut

BY Reuters | ECONOMIC | 05/17/24 11:00 AM EDT

MEXICO CITY, May 17 (Reuters) - Mexican central bank deputy governor Irene Espinosa does not foresee a rate cut in June, she told local newspaper El Economista in an interview published on Friday.

Espinosa also warned that she thought the rate cut in March, which lowered Mexico's benchmark rate from 11.25% to 11.00%, was premature and delayed inflation's convergence to target by two quarters. (Reporting by Ana Isabel Martinez; Editing by Brendan O'Boyle)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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