Mexico's Inflation Rose Again in October. The Rate Cut Came First.
Mexico's October inflation rose to 3.75% after Banxico had cut rates to 6.25%. The sequence shows why remaining inside a target band is not the same as reaching the goal.
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← All tagsMexico's October inflation rose to 3.75% after Banxico had cut rates to 6.25%. The sequence shows why remaining inside a target band is not the same as reaching the goal.
Mexico's central bank lowered its policy rate to 6.25% in a divided vote even as it raised near-term inflation forecasts. The message was a one-off adjustment, not a promise of more cuts.
Britain’s central bank delivered its first interest-rate increase since August 2023. An 8–1 vote masked a demand for an even larger rise, while energy-driven inflation and the next rate decision remain uncertain.
Sweden’s Riksbank raised its policy rate by a quarter point to 2%, effective 11 November, and left the door open to further increases despite September headline CPIF inflation of 1.5%.
Banks sought more than 200 billion yuan in quota under China’s share-buyback relending facility after the central bank cut its rate to 1%. Applications are not the same as loans disbursed.
Eurostat estimates euro area inflation at 4.0% in October 2026, with energy up 20.8% but core inflation steady at 2.5%. What matters next is whether the shock spreads and persists.
Australia raised its cash rate to 4.85% after a 6–3 vote, the fifth increase in 2026. The RBA says domestic capacity pressures—not just expensive oil—help explain the decision.
Economists expect the Bank of England to lift Bank Rate from 3.75% to 4.00% on 5 November. But the vote, new forecasts and debate over energy-driven second-round inflation may matter more than the quarter-point headline.
China's central bank will raise financial institutions' foreign-exchange reserve requirement from 4% to 6% on November 15. The move affects foreign-currency liquidity, not the renminbi deposit reserve ratio.