Mexico inflation falls in early November, fueling rate-cut expectations

Nov 22 (Reuters) - Mexico's annual inflation rate eased in early November, official data showed on Friday, boosting bets that the central bank will continue to cut interest rates.

Annual inflation in Latin America's second-largest economy hit 4.56%, down from 4.69% in the previous month, after edging up in the previous pair of two-week periods. Economists polled by Reuters expected an unchanged reading.

The head of the Bank of Mexico told Reuters in an interview on Monday that the bank would likely be able to continue cutting its key lending rate as inflation remains on its downward trajectory.

Banxico, as the central bank is known, lowered its key rate by 25 basis points to 10.25% last week - its third consecutive rate reduction - in a unanimous decision by its five-member governing board.

Mexico's closely monitored core consumer price index, seen as a better gauge of price trends because it strips out volatile energy and food prices, came in below forecast at an annual 3.58%. (Reporting by Natalia Siniawski Editing by Christina Fincher)