Banxico's Cuadra argues for further rate holds

MEXICO CITY, June ‌17 (Reuters) - Mexico ​Central ​Bank Deputy Governor Gabriel Cuadra argued that the monetary authority should hold its ‌benchmark interest rate further at 6.50% in ⁠light of a complex inflation outlook, he said in an ‌interview published on Wednesday.

The ‌timing of any rate adjustment is not predetermined and will depend on how inflation evolves, ​he added in the interview with local outlet Bloomberg Linea.

• "I am seeing a scenario with ⁠a certain degree of complexity. We have a balance (of factors) that ​is delicate, I think we would have to maintain this interest rate," he ​said. "How long can the rate ‌stay there? We don't know," he added.

• The central bank's next policy decision ⁠is June 25.

• Cuadra said the debate should focus on the inflation outlook rather than whether Banxico ⁠can keep cutting rates, and reiterated that price pressures are ​expected to ease as temporary shocks dissipate, although risks remain and forecasts could still change if new pressures ‌emerge.

• The central bank's benchmark rate currently stands at 6.50% after a 25-basis-point ‌cut at its May 7 meeting, which central ⁠bank officials have ‌indicated is likely ​to mark a pause in the easing cycle.

(Reporting by Raul Cortes; Editing by Aida ‌Pelaez-Fernandez)

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