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Mexico Central Bank Cuts Rate Amid Forecasts Easing Will End

  • Banxico unanimously lowers benchmark rate by half point to 5%
  • Economists forecast one more half-point reduction this year
Pedestrians walk in front of the Banco de Mexico building in Mexico City.

Pedestrians walk in front of the Banco de Mexico building in Mexico City.

Photographer: Susana Gonzalez/Bloomberg
Updated on

Mexico cut its benchmark interest rate to the lowest in almost four years to counter its worst economic crisis since the 1930s.

Banco de Mexico, or Banxico, lowered its policy rate by half a percentage point to 5% in a unanimous decision, as forecast by all 21 economists in a Bloomberg survey. The decision is the fourth such cut since the coronavirus pandemic hit the country.