Mexican Central Bank Eyes Further Rate Cuts Amid Inflation Steadiness
Mexico's central bank governor, Victoria Rodriguez, anticipates further interest rate cuts if inflation remains stable. The benchmark rate was cut to 9.00% in March 2025 due to sluggish economic growth. Rodriguez warns of continued economic weakness amidst potential U.S. economic slowdowns.
Mexican Central Bank Governor Victoria Rodriguez indicated potential further cuts to the benchmark interest rate should inflation remain steady. In a written statement to Reuters on Tuesday, Rodriguez said, "We foresee that the inflationary environment will allow us to continue with the cycle of cuts to the reference rate."
This March, the Bank of Mexico reduced the benchmark interest rate for the second consecutive time by half a percentage point, setting it at 9.00%, the lowest since September 2022. Figures from Mexico's national statistics institute show the economy grew a mere 0.2% in Q1 2025 compared to the prior quarter.
Despite the modest growth, Rodriguez cautioned that the Mexican economy might remain sluggish through 2025, particularly in light of a potential economic slowdown in the U.S. "While it is positive that growth was seen in this period, it was low, so the weakness of the Mexican economy persists," she added.
(With inputs from agencies.)
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