Mexico's Central Bank Eyes Further Rate Cuts Amid Economic Uncertainty

Mexico's central bank is keeping the door open for more interest rate cuts, as stated by Deputy Governor Jonathan Heath in a podcast with lender Banorte released on Wednesday. The bank had recently lowered its benchmark rate by 50 basis points to 9% last month.

The decision came unanimously amid global trade tensions, prompting the bank's board to exercise caution. Heath emphasized the likelihood of continuing rate reductions in the face of such economic uncertainties, including U.S. imposed tariffs.

Despite the risks, the central bank aims to maintain a less restrictive monetary stance. Both the Mexican and U.S. economies are predicted to experience a slowdown, further justifying the bank's approach.

(With inputs from agencies.)