Economics
Mexico Cuts Key Rate for Fourth Time After Inflation Slows
- Central bank lowers rate quarter point after growth stagnated
- Only one member voted for half-point cut versus two previously
Photographer: Susana Gonzalez/Bloomberg
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Mexico’s central bank cut its key interest rate for a fourth straight decision after inflation slowed to the 3% target and economic growth crawled to a standstill.
Policy makers on Thursday reduced the overnight rate a quarter point to 7.25%, as forecast by all but one of the 23 economists surveyed by Bloomberg. That still leaves Mexico with restrictive monetary policy and the highest real rate, or borrowing costs minus inflation, in the Group of 20.