Mexico central bank minutes highlight inflation easing but still complex
Adds minute details, background on hikes
MEXICO CITY, June 1 (Reuters) -The Bank of Mexico's governing board highlighted that inflation and inflationary pressures were easing but still remained high, minutes from the bank's May 17 monetary policy meeting showed on Thursday.
The Mexican central bank, known as Banxico, unanimously held itsbenchmark interest rate steady at 11.25% at that meeting, breaking a nearly two-year rate-hike cycle in which it raised the rate by 725 basis points to combat rising consumer prices.
The minutes reiterated comments made during Wednesday's quarterly report that the key interest rate would need to remain on hold for "an extended period" in order to bring inflation down to its 3% target.
Banxico projects inflation will converge to its target in the fourth quarter of 2024.
Annual inflation in Mexico reached its lowest level in 20 months in the first half of May at 6.0%.
Reporting by Isabel Woodford; Editing by Anthony Esposito
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