Mexico

Mexico’s inflation accelerated more than expected in June, complicating central bank’s efforts to cut interest rates that remain near an all-time high, Bloomberg News reported. Consumer prices rose 4.98% from a year earlier, above the 4.87% median estimate of analysts in a Bloomberg survey. Core inflation, a metric that strips out volatile components and that the Mexican central bank watches closely, slowed to 4.13%, slightly below the 4.14% median estimate.

Mexico kept borrowing costs unchanged near a record high Thursday, as the combination of still rising consumer prices and peso volatility sidelined the central bank for a second straight meeting, Bloomberg News reported. Banxico, as the central bank is known, held the key rate at 11% in a decision that had been forecast by 25 of 27 analysts surveyed by Bloomberg. It was a split decision, with deputy Governor Omar Mejia voting for a quarter-point cut with the other four members of the board voting in favor of the hold.

Mexico’s inflation accelerated more than expected in early June to move further above the central bank’s target, likely cementing a second straight pause by Banco de Mexico at its Thursday rate meeting, Bloomberg News reported. Consumer prices rose 4.78% in the first two weeks of the month from a year earlier, above the 4.73% median estimate of analysts in a Bloomberg survey and up from the 4.59% increase in the prior two-week period.

Mexico’s central bank opened the door to intervening in the peso, an acknowledgment of the turmoil roiling the market after a post-election rout sent the currency tumbling to a 15-month low, Bloomberg News reported. Banco de Mexico Governor Victoria Rodriguez told reporters Wednesday that there are tools available to restore market order, if needed. She blamed the volatility mostly on external factors, and insisted policymakers aren’t trying to defend a specific level for the currency.

Apollo Global Management Inc. and other investors are seeking to raise as much as $500 million in an initial public offering of Grupo Aeromexico SAB, the Mexican carrier that emerged from bankruptcy protection more than two years ago. The alternative asset manager, which owns about 22% of Aeromexico, and other selling shareholders are aiming to raise about $400 million to $500 million in the Mexico City-based carrier’s listing, said the people, who asked not to be identified discussing confidential information.

Mexico’s annual inflation accelerated slightly more than expected during the first two weeks of May, likely fueling bets that the hawkish central bank will be slow to lower its interest rate, Bloomberg News reported. Consumer prices rose 4.78% from a year prior, the national statistics institute reported on Thursday, a tad above the median forecast of 4.75% in a Bloomberg survey and also up from the 4.67% increase in the prior two-week period.

Grupo Aeromexico SAB is seeking a return to equity markets, filing for a US initial public offering two years after delisting from the Mexican stock exchange, Bloomberg News reported. The company intends to list American Depositary shares or ADS on the NYSE under the symbol AERO and there will be no public offering of the shares in Mexico, Aeromexico said in the prospectus. The company didn’t disclose the size or price range of the offering. Barclays, Morgan Stanley, JP Morgan, Evercore ISI and Apollo Global Securities will be underwriters for the deal.

The Bank of Mexico's five-member board will discuss the possibility of resuming interest rate cuts at the upcoming June 27 monetary policy meeting, following a rate hold last week, Governor Victoria Rodriguez told Reuters. Banxico, as the Mexican central bank is known, held its benchmark interest rate steady at 11.00% on Thursday in a unanimous decision by its governing board, coming after a March cut of 25 basis points, the first rate reduction since it embarked on a tightening cycle in 2021.

Mexico is studying options to absorb as much as $40 billion in Pemex debt, the equivalent of what will come due in the next presidential term, one of its top finance officials told investors in New York, Bloomberg News reported. The government is considering options that could include repurchasing bonds issued by the heavily indebted state oil firm Petroleos Mexicanos or issuing sovereign debt to fund buyouts, Deputy Finance Minister Gabriel Yorio told investors, according to people who participated in the meeting.

Mexico’s headline inflation sped up more than expected last month, likely cementing a rate hold at the central bank’s monetary policy meeting later on Thursday, Bloomberg News reported. Consumer prices rose 4.65% in April from a year earlier, up from 4.42% in March, the National Statistics Institute reported Thursday. The reading was slightly above the 4.63% median estimate from analysts in a Bloomberg survey.