Mexican central bank cuts rates but stays cautious on inflation
Falling peso and supply disruptions make inflation outlook “uncertain” despite recession, board says
The Bank of Mexico’s governing board cut rates on May 14 in a bid to offset the economic crisis caused by the Covid-19 pandemic.
The board voted unanimously in favour of reducing the policy rate by 50 basis points to 5.5%. The decision follows two more 50bp rate reductions, one in March and another in April.
The board said in a statement that “economic activity in Mexico contracted significantly during the first quarter of the year. The statement said the pandemic’s magnitude and duration were
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