MEXICO CITY (Reuters) – The Financial institution of Mexico lowered its benchmark rate of interest by 25 foundation factors on Thursday for the second straight time, as inflation in Latin America’s no. 2 financial system eases and after the U.S. Federal Reserve’s aggressive fee lower earlier this month.
The choice by the central financial institution’s five-member governing board was not unanimous, with Deputy Governor Jonathan Heath casting the only vote to carry the speed at its earlier degree of 10.75%.
Analysts polled by Reuters had overwhelmingly forecast a 25-basis-point lower.
“Trying forward, the Board expects that the inflationary setting will permit additional reference fee changes,” Banxico, as Mexico’s central financial institution is understood, stated in an announcement saying the choice.
Annual headline inflation slowed to 4.66% within the first half of September, official information confirmed on Tuesday, its fourth consecutive fortnight of declines, whereas core inflation moderated to three.95%, its lowest degree since early 2021.
