Bank of Mexico Lowers Interest Rates Amid Easing Price Pressures

The Bank of Mexico reduced its benchmark interest rate by 25 basis points to 10.50%, marking the second straight cut. This decision followed easing price pressures in Mexico, despite a divided vote among the central bank's governing board. Analysts expect further cuts as inflationary pressures moderate.

The Bank of Mexico lowered its benchmark interest rate by 25 basis points to 10.50% on Thursday, marking the second consecutive cut amid easing price pressures in Latin America's second-largest economy.

The central bank took a cautiously optimistic stance on the possibility of additional rate reductions. The latest cut, approved by the central bank's five-member governing board, was not unanimous, with Deputy Governor Jonathan Heath casting a dissenting vote to maintain the rate at 10.75%.

Analysts surveyed by Reuters had largely predicted the 25-basis-point reduction. In its announcement, Banxico noted improvements in the global inflation outlook. The core inflation rate, a key measure for price trends, is expected to continue decreasing.

(With inputs from agencies.)