MNI BRIEF: Banxico Cuts Rates 25BPS To 11%, Offers No Guidance
Little clarity on what comes next for Banxico; deputy Irene Espinosa dissents in favor of keeping rates on hold.
Mexico's central bank decided, with one dissenting vote, to cut its overnight interbank interest rate by 25bp, to 11.00% Thursday, kicking off a new easing cycle after holding borrowing costs at 11.25% for seven consecutive meetings -- but offering no hint of what comes next.
"In the next monetary policy meetings, it will make its decisions depending on available information," the statement said. "With this decision, the monetary policy stance remains restrictive and will continue being conducive to the convergence of inflation to the 3% target in the forecast horizon." (See MNI POLICY: Banxico Set To Discuss Forward Guidance)
Governor Victoria Rodriguez as well as deputies Galia Borja, Jonathan Heath and Omar Meija voted in favor of the cut, while Irene Espinosa voted to keep rates on hold.
The board signaled in February it would assess the possibility of reducing rates in coming meetings. (See MNI INTERVIEW: Banxico Minutes Reinforce March Rate Cut-Roldan)