Mexico Unexpectedly Cuts Key Rate for First Time Since 2009

Mexico’s central bank unexpectedly cut its benchmark interest rate for the first time since 2009 as inflation remains within the target range and growth slows. The peso strengthened.

Banco de Mexico reduced the overnight lending rate by 50 basis points to a record-low 4 percent, a move forecast by seven of 25 analysts in a Bloomberg survey. The rest predicted the rate would stay on hold. Latin America’s second-largest economy was the only nation in the Group of 20 to leave borrowing costs unchanged and refrain from buying bonds to ease monetary conditions since July 2009.