Mexican Central Bank Rate Cut – Currency Thoughts

Mexican Central Bank Rate Cut

March 28, 2025

The Bank of Mexico‘s overnight interbank rate has been cut another half percentage point to 9.0%, its lowest level since September 2022. There was a 50-basis point cut at the prior February review of monetary policy and five previous cuts of 25 basis points that began a year ago in March 2024. Mexican CPI inflation printed at 3.8% last month, still above the 2.0% target center but just slightly under the 4% target ceiling. Officials noted that ” The Mexican economy is expected to exhibit weakness once again in the first quarter of 2025. The environment of uncertainty and trade tensions poses significant downward risks.” Officials “anticipate that the inflationary environment will allow to continue the rate cutting cycle, albeit maintaining a restrictive stance.”

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Bank of Mexico

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on Friday, March 28th, 2025 at 8:18 am and is filed under Central Bank Watch.
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