Mexico central bank cuts interest rate to 6.25%
31 Articles
31 Articles
(Mexico City = Yonhap News) Correspondent Song Gwang-ho = The central bank of Mexico cut its base interest rate by 0.25%, defying market expectations.
This decision was surprising because last July, when it applied a similar decrease, the institution had announced that it was concluding a cycle of cuts initiated in 2024. In August and September, the Bank of Mexico kept the rate unchanged at 6.50%. The Mexican economy, the second largest in Latin America after Brazil, recorded in the third quarter of 2026 its highest growth in three years at an annual rate of 3.2%. The central bank’s governing …
The central bank of Mexico (Banxico) reduced the country's interest by 0.25 percentage point (p.p.), to 6.25% per year. The decision interrupted the pause cycle announced by the monetary authority and was contrary to the market consensus, which expected a maintenance of the fee. The vote was not unanimous, with three in favour of the cut and two supporting a maintenance. Exclusive material for subscribers. To have full access, access the link of…
The central bank notes that this adjustment is timely and states that keeping the reference rates at this level for a long time will help to face the “external challenges”
The reduction implies a lower yield margin for Mexican financial instruments vis-à-vis Americans, particularly if the Fed keeps its benchmark rate unchanged
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