Banxico Delivers Third Straight Half-Point Cut as Growth Slows

The Bank of Mexico (Banxico) decided to apply another cut of 50 basis points to its benchmark interest rate, to leave it at a level of 8.50 percent. This is the third consecutive cut of half a percentage point that the central bank applies to the reference rate, and means the seventh decrease since its decision of June 2024, when it kept it at 11.00 percent. Banxico’s rate closed 2024 at 10.00 percent, then dropped to 9.50 percent in February 20…

Banxico Delivers Third Straight Half-Point Cut as Growth Slows

Mexico’s central bank cut borrowing costs by half a percentage point Thursday after the economy narrowly avoided falling into recession and inflation remained within the target range.

Banxico applied another cut of 50 basis points to its rate, to leave it at 8.50%, due to weak economic activity and high uncertainty.

The Mexican peso has been approaching the terrain of the 18 units, this because of the expectation that Donald Trump will reach new trade agreements and eliminate their reciprocal tariffs.

Bank of Mexico (Banxico) points out that it will keep the pace of interest rate cuts at 50 basis points for the next meeting, but also warned that price developments are facing a panorama of uncertainty. In its monetary policy announcement, the central bank made the third cut to the 50 bp thread, so now the interest rate is at 8.50%. Although it does not rule out a similar adjustment in June, it stressed that it is still at restrictive levels, s…

The Bank of Mexico (Banxico) cut the benchmark interest rate for the third consecutive time by 50 basis points, so that it stood at 8.50%, a level not seen since August 2022. In this way, the Central Bank complied with the consensus of analysts with a decision that was taken unanimously: the cut from 9% to 8.50%. Banxico cuts interest rate by 50 basis points In the most recent Citi expectations survey, of the 34 participants consulted, 33 antici…