Bank of Mexico lowers key interest rate to 10.50% with single dissent
2024.09.26 15:24
MEXICO CITY (Reuters) – The Bank of Mexico lowered its benchmark interest rate by 25 basis points on Thursday for the second straight time, as inflation in Latin America’s no. 2 economy eases and after the U.S. Federal Reserve’s aggressive rate cut earlier this month.
The decision by the central bank’s five-member governing board was not unanimous, with Deputy Governor Jonathan Heath casting the sole vote to hold the rate at its previous level of 10.75%.
Analysts polled by Reuters had overwhelmingly forecast a 25-basis-point cut.
“Looking ahead, the Board expects that the inflationary environment will allow further reference rate adjustments,” Banxico, as Mexico’s central bank is known, said in a statement announcing the decision.
Annual headline inflation slowed to 4.66% in the first half of September, official data showed on Tuesday, its fourth consecutive fortnight of declines, while core inflation moderated to 3.95%, its lowest level since early 2021.
