Bank of Mexico's Bold Move: Interest Rate Slashed

The Bank of Mexico has reduced its benchmark interest rate by 25 basis points to 7.00%. The decision was made by the central bank's governing board, although it was not unanimous, as Deputy Governor Jonathan Heath opposed the change, preferring to keep the rate at 7.25%.

The Bank of Mexico has taken a significant step by lowering its benchmark interest rate by 25 basis points, bringing it down to 7.00% as of Thursday.

This decision, made by the bank's five-member governing board, reflects varied viewpoints within the board itself. It comes amid ongoing economic challenges.

Deputy Governor Jonathan Heath dissented, advocating to maintain the previous rate of 7.25%, illustrating the complexities and differing opinions within the central bank regarding monetary policy direction.

(With inputs from agencies.)