Due to a deep economic contraction during the second quarter of 2020 and just as expected by the market consensus, Mexico’s central bank (Banxico) cut the benchmark interest rate by half-point to 4.5%, its lowest level since 2016.

A member of Banxico’s board voted to reduce the rate to 4.75% from 5% at which it was since last June 25.


said that the majority vote decided to cut the benchmark interest rate by 50 basis points to 4.5% to enter into force on August 14, 2020.

It said timely information shows that Mexico’s economic activity had a deep contraction between April and June 2020 due to the COVID-19 pandemic.


There was a recovery from low activity levels in June as a response to the reopening of some sectors following an easing on mobility restrictions and a certain hike on external demand.

Nevertheless, Banxico warned there is still an uncertain environment. Hence, more similar measures are expected on the economic horizon with significant downward risks.


Google News


Noticias según tus intereses