Mexico’s Central Bank Cuts Rate to 6.25%
Banxico cut Mexico's key interest rate by a quarter point to 6.25% in a split vote and said it expects to hold for a long time. The post Mexico’s Central Bank Cuts Rate to 6.25% appeared first on The Rio Times .
Mexico's central bank, Banxico, decided to reduce its main interest rate to 6.25% on Thursday, concluding three consecutive reductions from 6.50%. The five-member board voted 3-2 in favor of the cut, causing the peso to weaken. This move impacts importers, investors, and travelers dealing with the peso. The bank's governor and two deputy governors voted for the reduction.
Inflation has risen slightly, but core inflation has eased. The bank expects inflation to return to its 3% target by the end of 2027. The bank forecasts holding the rate at 6.25% for an extended period in its December meeting.
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