Mexico Eases Monetary Tightening as Inflation Cools

The Bank of Mexico has reduced its benchmark interest rate by 50 basis points to 9.50% following a decline in inflation, with potential for further cuts. The rate change was decided by a non-unanimous vote from the bank's governing board.

The Bank of Mexico has reduced its benchmark interest rate by 50 basis points to 9.50% in response to easing inflationary pressures. This move indicates potential further rate cuts in upcoming monetary policy meetings.

The central bank's decision reflects a strategic response to the current economic climate, aiming to stimulate growth as inflation shows signs of cooling.

However, the decision by the central bank's five-member governing board was not unanimous, indicating differing views on the optimal pace and magnitude of monetary policy adjustment.

(With inputs from agencies.)