The Bank of Mexico has further cut the policy rate by 50 basis points.

Foreks - The Bank of Mexico (Banxico) has cut interest rates once again due to the continued slowdown in inflation and the threat of increased tariffs from U.S. President Donald Trump on the country's economy. Following four consecutive cuts of 25 basis points, the Board of Banxico maintained the reduction at 50 basis points in the last meeting, bringing the benchmark interest rate down from 9.50% to 9.00%, aligning with market expectations.

The unanimous decision by the Bank's Board indicated that "similar-sized" further cuts are possible. Mexico has been preparing for Trump’s threat to impose a 25% tariff on all exports to the U.S. earlier this year. Mexican President Claudia Sheinbaum announced that she would reveal Mexico's response to the new tariffs on April 3, emphasizing cooperation with Trump on security and immigration issues. Banxico's five-member board stated it would continue its efforts to meet the 3% inflation target, with headline inflation dropping to 3.67% in early March compared to the same period in 2024.