Banxico Set to Deliver Final Cut in Easing Cycle After Economy Shrank

Mexican policymakers will likely end their two-year easing cycle with a final interest rate cut on Thursday after the central bank chief signaled her willingness for one more drop and the economy contracted.

Board members led by Victoria Rodriguez Ceja will lower borrowing costs by a quarter-point to 6.5%, according to all economists in a Bloomberg survey. That’s down from a high of 11.25% seen in 2024 before rate cuts began.