Banxico Lowers Rate by Half Point, Opens Door to Smaller Cut

Mexico’s central bank again cut its benchmark interest rate by half a percentage point but it opened the door to smaller cuts going forward as policymakers worry the economy will continue to suffer headwinds after barely avoiding tipping into recession earlier this year.

Banxico, as the bank is known, lowered its key lending rate to 8% on Thursday, as expected by 27 of 29 economists surveyed by Bloomberg. The two dissenters forecast a 25-basis-point reduction.