Bank of Mexico Slashes Rates Amid Cooling Inflation

The Bank of Mexico reduced its benchmark interest rate by 50 basis points to 9.00% due to decreasing inflation. The unanimous decision by the central bank's board indicates potential for further rate cuts in future meetings.

The Bank of Mexico made a significant monetary policy move on Thursday, cutting its benchmark interest rate by 50 basis points to 9.00%. This decision comes as inflation shows signs of easing, providing a window for economic adjustment.

The central bank's five-member governing board reached a unanimous decision on the rate cut, reflecting a shared confidence in the current economic outlook and a strategy aimed at fostering economic growth through favorable lending conditions.

Observers anticipate that the central bank may continue to lower the rate in forthcoming meetings, maintaining a cautious approach while balancing inflation targets and economic momentum.

(With inputs from agencies.)