Central Banks

Banxico Signals Smaller Interest Rate Cuts Going Forward

Shoppers at a street market in Mexico City.

Photographer: Stephania Corpi/Bloomberg

Mexico’s central bank indicated that the pace of interest rate cuts is likely to slow after last month’s half percentage-point reduction, with policymakers pointing to cooling growth for Latin America’s No. 2 economy.

Victoria Rodriguez, the governor of the bank, explicitly embraced the likelihood of smaller cuts to the key lending rate going forward in a speech delivered on Wednesday.