MEXICO CITY (Reuters) -The Bank of Mexico said on Thursday that it might continue cutting the benchmark interest rate at future monetary policy meetings and could “consider adjusting it in similar magnitudes” to the latest 50 basis points reduction.
Banxico, as the Mexican central bank is known, lowered its key rate by half a percentage point to 9.50% in a decision announced on Feb. 6, as inflation cools and after the economy contracted slightly late last year.
One of Banxico’s five board members said that considering the progress made on disinflation that “a similar reference rate cut could be considered at the next monetary policy meeting,” according to minutes of the February policy meeting.
Banxico will announce its next monetary policy decision on March 27.
The February rate cut was double the 25-basis-point reductions Banxico had implemented since it began lowering borrowing costs from a record high of 11.25% in March 2024.
(Reporting by Natalia Siniawski; Editing by Anthony Esposito)
Comments