Mexico’s central bank cut key interest by 25bps amid slowing growth.
Mexico’s central bank (Banxico) is expected to cut its key interest rate by 25 basis points to 7.50% at its September 25 meeting.
This would be the eleventh rate reduction since early 2024 as the bank addresses weak economic growth.
This would be the eleventh gradual cut since the bank began lowering rates in early 2024 to support the slowing economy.
Luciano Campos, senior economist at Numera Analytics said
“Mexico’s economy has decelerated, with growth stalling in Q2. Meanwhile, inflation has moderated, aligning with Banxico’s 3 plus/minus 1% target,”
“Despite notable rate reductions over the past year, elevated interest rates persist, making a 25 basis-point cut from 7.75% to 7.50% the probable outcome at next week’s meeting,”
