Economics
Mexico Slows Rate Cut Pace as Easing Cycle Nears End
- Banxico lowers benchmark interest rate to 4.25% from 4.5%
- Bank cut rate by half a point at each of past five meetings
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Mexico’s central bank cut its key interest rate by a quarter point, the least since February, in a sign the current monetary easing cycle is nearing its end after inflation sped past target.
Banco de Mexico, led by Governor Alejandro Diaz de Leon, unanimously voted to lower borrowing costs to 4.25%, in line with 18 of 23 estimates in a Bloomberg survey. Four economists expected the bank wouldn’t chop rates while one thought it would deliver another half-point cut, the same pace of the previous five decisions.