Mexico's Central Bank Cuts Interest Rate Amid Economic Uncertainty

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.)