Peru and Mexico Cut Interest Rates Despite Rising Inflation Concerns

Unexpected rate cuts by central banks in Peru and Mexico challenge traditional inflation-fighting strategies.

Peru's central bank reduced its benchmark rate to 5.5%, despite core inflation remaining high.
Mexico's central bank cut its interest rate to 10.75%, even as inflation surged to 5.57% in July.
Analysts expressed surprise at both decisions, citing potential risks to economic stability.
Peru's overall inflation has slowed, contrasting with Mexico's rising inflation figures.
Both countries' rate cuts reflect a focus on supporting economic growth over controlling inflation.