Uncertainty complicates Mexico cenbank's path to quicker rate cuts, says deputy governor

MEXICO CITY, Dec 3 (Reuters) - A deputy governor of Mexico's central bank said she sees a difficult path to increasing the pace of interest rate cuts in Latin America's No. 2 economy due to lingering uncertainty, according to a report published by Bloomberg on Tuesday.

Deputy Governor Irene Espinosa told the outlet that "greater uncertainty" makes boosting the pace of cuts to the key lending rate set by the bank more difficult. She stressed that she favors a more gradual approach.

Last week, the monetary authority's five-member governing board argued that expectations of cooling inflation could open the door to further interest-rate cuts, but it also cautioned against moving too quickly.

In its most recent interest rate announcement on Nov. 14, the bank

lowered its benchmark rate

by 25 basis points in a unanimous decision to settle at 10.25%.

"Right now, many things would need to change to be able to think that the right conditions exist to make a much more aggressive movement," added Espinosa. (Reporting by Ana Isabel Martinez; Editing by Aida Pelaez-Fernandez)