Analysts shocked as Mexico's central bank clocks rise in inflation _ and cuts interest rates

MEXICO CITY — Analysts expressed shock Thursday at a decision by Mexico’s central bank to cut interest rates on the same day that official figures showed a sharp rise in domestic inflation. Almost without exception, central banks raise interest rates to make money more expensive, in order to discourage price increases. But in a decision Thursday, the Bank of Mexico cut interest rates by 0.25% to 10.75%, even though inflation rose by over one percent to 5.57% in July. For most of this year, inflation has been moving further away...