MEXICO CITY, Nov 19 Reuters The Bank of Mexico will likely be able to continue cutting its benchmark interest rate due to the progress made on bringing inflation down, bank governor Victoria Rodriguez told Reuters in an interview.

Banxico, as Mexico39;s central bank is known, lowered its key rate by 25 basis points to 10.25 on Thursday in a unanimous decision by its fivemember governing board.

Given the progress of disinflation, we believe that we can continue with the cuts to the reference rate and in the following meetings we will be assessing the inflationary outlook and making the corresponding decisions, said Rodriguez late on Monday.

In October, core inflation, which excludes volatile energy and food prices, slowed to 3.80 in the 12 months through October, down from 3.91 in September. Annual headline inflation rate ticked up to 4.76 last month, from 4.58 in September.

Banxico targets headline inflation at 3, plus or minus one percentage point.

Depending on what we see with the inflationary outlook, there could even be larger cuts, said Rodriguez, referring to the fact that all four interest rate reductions this year, including at the last three straight meetings, have been 25 basis points each.

Meanwhile, Mexico39;s peso currency has weakened sharply over the past six months, as a series of postMexican election reforms shook investor confidence in the country39;s legal system, and as Donald Trump39;s U.S. election victory fuels uncertainty over the future…