Central Banks
Banxico Cuts Rates, Considers More Easing as Economy Slows
- A majority of analysts had forecast bank’s second cut of 2024
- Core inflation has trended lower even as headline prints rise
Victoria Rodriguez, governor of the Bank of Mexico.
Photographer: Luis Antonio Rojas/BloombergThis article is for subscribers only.
Mexico’s central bank cut its benchmark interest rate for the first time since March and said it would consider additional reductions as policymakers look past the recent inflation spike to focus on threats to economic growth.
Banxico, as the bank is known, on Thursday reduced its key rate by a quarter-point to 10.75% in a split decision. The move was forecast by 15 of 29 economists surveyed by Bloomberg. Fourteen analysts expected the bank to keep it at 11%.