Mexico’s Central Bank Lowers Interest Rate by 25 Basis Points as Inflation Eases, Reports Reuters

MEXICO CITY (Reuters) – The Bank of Mexico has reduced its benchmark interest rate by 25 basis points for the second consecutive time, as inflation in the country’s economy continues to ease. This move follows a significant rate cut by the U.S. Federal Reserve earlier in the month.

The decision made by the central bank’s governing board, consisting of five members, was not unanimous. Deputy Governor Jonathan Heath was the sole member who voted to maintain the rate at the previous level of 10.75%.

A majority of analysts surveyed had predicted this 25-basis-point cut.

In a statement announcing the decision, Banxico, as the Bank of Mexico is known, indicated that the board anticipates that the current inflationary conditions will permit further adjustments to the reference rate.

Recent official data revealed that annual headline inflation decelerated to 4.66% in the first half of September, marking the fourth consecutive fortnight of declines. Furthermore, core inflation decreased to 3.95%, the lowest level observed since early 2021.