MNI BRIEF: Banxico Boosts Cutting Pace To 50BP, Signals More
MNI (BRASILIA) - The Central Bank of Mexico ratcheted up the pace of interest rate cuts Thursday, reducing its overnight interbank benchmark by 50 basis points to 9.50%, with Deputy Governor Jonathan Heath dissenting in favor of a smaller 25bp cut.
This marks the fifth consecutive rate cut for Banxico, which indicated further 50bp rate cuts at the upcoming meetings. "The Board estimates that, looking ahead, it could continue calibrating the monetary policy stance and consider adjusting it in similar magnitudes," the statement said.
The decision was in line with market expectations. Banxico continues to expect headline inflation to converge to the 3% target by the third quarter of 2026.
"Announcements of possible changes in economic policy by the new U.S. administration have added uncertainty to the projections," the statement added. (See MNI WATCH: Banxico Set To Accelerate Pace By Cutting 50BP)