Economics
Mexico Cuts Key Rate After Unscheduled Central Bank Meeting
- Banxico reduces rate by half a point to 6.50% as risks grow
- Will sell dollars to defend the crashing Mexican peso
This article is for subscribers only.
Mexico’s central bank ditched its usual caution and joined a wave of emergency interest rate cuts across the world as risks grow of a devastating recession.
The bank cut its policy rate by half a percentage point to 6.5% on Friday in its first unscheduled decision in four years. It also announced emergency liquidity measures, including dollar auctions, to shore up the battered peso.