Mexico central bank cuts key lending rate by 25 basis points; governor says core inflation a 'challenge'

[MEXICO CITY] In a majority decision, the Bank of Mexico's five-member board voted earlier in the day to reduce its key lending rate by 25 basis points, the first cut since June 2014.

Mexican central bank Governor Alejandro Diaz de Leon sees core inflation as a 'challenge' and said the bank will consider new information over the coming weeks before taking further monetary policy actions, he told Reuters in an interview on Thursday.

Core inflation, which strips out some volatile food and energy prices, has remained persistent around 3.8 per cent, according to the central bank's monetary policy meeting statement.

REUTERS