Mexico's Central Bank Cuts Interest Rate Amid Economic Uncertainty

The Bank of Mexico reduced its benchmark interest rate by 50 basis points to 8.50%, citing inflation within target and economic uncertainty. This decision, which was unanimous and anticipated by analysts, marks the lowest rate since August 2022 and may precede further reductions.

The Bank of Mexico has taken significant monetary action by reducing its benchmark interest rate by 50 basis points to 8.50%, as announced on Thursday. This move addresses ongoing inflation concerns and economic uncertainty.

With inflation remaining within the central bank's target range yet trade tensions persisting, the policy adjustment was unanimously decided by the bank's governing board, aligning with analyst expectations.

Following a recent report showing a rise in headline inflation to 3.93% in April, the Bank of Mexico hinted at the possibility of further rate cuts in upcoming meetings, illustrating a proactive approach to economic management.

(With inputs from agencies.)