Mexico’s central bank signals end of easing cycle after reducing benchmark rate by 25 basis points in a 3-2 vote.
The Bank of Mexico reduced its benchmark interest rate by 25 basis points to 11.00%, marking its first cut since 2021. The decision was split 3-2, with policymakers signaling this may conclude the current easing cycle amid persistent inflation concerns.
Prior to the move, the rate stood at 11.25%, where it had remained since March 2023. Analysts had largely anticipated the cut, though expectations for further reductions this year have dimmed due to sticky inflation and a cautious outlook.
Markets showed muted reaction, with the peso trading near session highs and local bonds slightly firmer as investors parsed the central bank’s guidance.