Gil Diaz Anticipates Rate Cuts

Mexico’s central bank will begin cutting interest rates before yearend as inflation slows, Finance Minister Francisco Gil Diaz said. A reduction would end more than a year of rate increases by Banco de Mexico, which pushed up the overnight loan rate to 9.9 percent from 5.5 percent in the past 15 months. Annual inflation slowed to 4.6 percent in April after peaking at 5.4 percent in November. Mexico’s yearend inflation target is 3 percent.