Bank of Mexico cuts rates by 25bp amid slowing inflation
Doveish tone signals further easing to come, say analysts
The Bank of Mexico (Banxico) on September 26 reduced its overnight interbank interest rate by 25 basis points to 10.5%.
Four of the five monetary policy committee (MPC) members, including governor Victoria Rodríguez, voted for the cut. The other member, Jonathan Heath, voted to hold.
In a statement, the MPC said Mexico’s economy was “undergoing a period of weakness” and that employment had “slowed down”. It added that the peso had remained highly volatile since the last MPC meeting in August.
Acco
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