Economics
Mexico Central Bank Can Cut Rates Further, Deputy Governor Says
- Guzman says Mexico needs to be “very careful” about more cuts
- Banxico lowered benchmark rate by half point to 5% last week
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Mexico has space to further reduce its benchmark interest rate, a central bank deputy governor said less than a week after policy makers slashed borrowing costs to the lowest in almost four years.
“We still have some margin to reduce interest rates, but of course we have to do this in a very careful way,” Javier Guzman, Deputy Governor of Mexico’s Central Bank, said Tuesday at a webinar hosted by the Institute of International Finance.