Economics
Mexico Cuts Key Rate for Fifth Time, Flags Economic Weakness
- Central bank reduces key interest rate by quarter point to 7%
- All board members agree on more moderate pace of rate cuts
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Mexico’s central bank cut its key interest rate for a fifth straight decision, saying that economic growth is likely to be less than it previously projected.
Banco de Mexico reduced its rate to 7% on Thursday, as forecast by all 27 economists in a Bloomberg survey. The decision was unanimous, the first time all five board members have been in agreement since last May. Deputy Governor Gerardo Esquivel, who voted for half-point cuts in the prior three meetings, abandoned that stance.