Banxico's Interest Rate Strategy: Are Bigger Cuts Ahead?

The Bank of Mexico's governing board is considering larger cuts to the benchmark interest rate, following a recent reduction to 10.00%. The minutes from the December monetary policy meeting indicate openness to this strategy, reflecting ongoing efforts to manage the country's economic challenges.

The Bank of Mexico, often referred to as Banxico, might be poised for more aggressive interest rate cuts, as suggested by minutes from its December meeting. Multiple board members expressed openness to increasing the magnitude of these cuts.

In December, the governing board unanimously agreed to reduce the benchmark rate by 25 basis points, bringing it to 10.00%.

This move signals Banxico's continued efforts to stabilize and stimulate the nation's economy amid various global and local challenges.

(With inputs from agencies.)