The Bank of Mexico (Banxico) cut interest rates this Thursday, for the second time in a row, by 25 basis points to 10.5 percent following a decline in inflation.
In its announcement, in line with market expectations, the central bank argued that, “although inflation forecasts still require a restrained stance, the evolution presented implies that reducing the level of monetary tightening is appropriate.”
The decision, approved by four votes in favor and one vote against, was the third interest rate cut in a year since its March 21 meeting, when the Governing Council lowered the interest rate by 25 basis points to 11%. first cut since March 30, 2023 due to better inflation expectationsat that time, at its meeting on August 8, the autonomous body cut the interest rate by 25 points to 10.75%, while on June 27 and May 9 it kept it at 11%.
This step is also in line with the United States Federal Reserve (Fed), which last week cut interest rates for the first time in four years to a range of 4.75% to 5%.