Bank of Mexico reduces interest rate 50 base points 8.5%

Mexico’s main interest rate will fall to 8.50%, and the Central Bank’s ruling committee unanimously backed the third-line-to-the-top cut-cutting cut on Thursday.

Five members of the Board voted in favor of the cut Despite the inflation in April.

The annual headline inflation rate is still within the 2% -4% target range of Mexico’s bank The market was expected The latest decision of the Board.

The 8.50% benchmark rate – the lowest rate in almost three years – will come into effect on Friday. The latest cut comes after the 50-base-point reduction in February and March.

Bank of Mexico (Panico) In a statement The ruling board took into account the behavior of the transmission rate of “USD: MXN) Weakness of economic activity And the impact of changes in trade policies globally ”while assessing whether the benchmark interest rate is fixed.

“The Board has decided to reduce the target for the interim interest rate of the overnight interest rate to 8.50%,” said Panico, “considering the current inflation view and money -out amount of money.”

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Because all its members are, the ruling board #Bancottemmigo On May 16, 2025 decided unanimously reduced the interim interest rate to 8.50% from 1 day. Access the report: https://t.co/5i8hur8svr pic.twitter.com/kqmeoxezi4

– Mexico Bank (@Banxico) May 15, 2025

The Central Bank pointed out that additional 50-base-point cuts could occur.

Bansigo said, “The Board estimates that the forward -looking policy policy is constantly measuring and adjusting it in similar sizes. It expects that it will allow the inflation to continue the cutting rate, but maintains a control position.”

The next monetary policy meeting of the ruling board is scheduled for June 26.

Panico’s main interest rate was up to 11% per full year A loosening cycle started with a 25-base-point cut in March 2024. Mexico’s annual title inflation rate The second half of the year 2022 rose to 8.7% for two decades.

The annual title rate was 3.93% in April, which was 3.80% in March and 3.77% in February. Panico targets 3% inflation, but considers any rate within 2% to 4% within its acceptable range.

View for inflation

Panico predicts the headline inflation rate will decrease by 3.5% in the third quarter of 2025.

The Central Bank predicts that inflation will continue in 2026 and reach 3% in the third quarter of next year.

Panico’s Outlook extends in the first quarter of 2027, which predicts that the annual headline inflation will be 3% more target rate.

Beso shuts down for $ 19.50

Beso was deployed on Thursday ahead of Panico’s interest rate announcement after the dollar was closed on Wednesday.

The final US dollar of Mexico’s Bank of Mexico: MXN was 19.50 on Thursday.

Wednesday Beso Reached its strong position since OctoberMonthly President Claudia Shinebam took office.

This year’s currency has been excellent since 2024, including a number of factors, including a comprehensive victory in the 2024 elections of Mexico last June, in 2024. Congress’s approval for a controversial judicial reform Donald Trump’s victory in the US presidential election last November.

Since Trump’s inauguration, US President has imposed fees on goods on goods, but 6.5% of Peso Green Back has been appreciated, Including steelAluminum, Vehicles And products that are not closed by the USMCA free trade agreement.

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