MNI Banxico Review – Feb 2025: 50bp Cut, Scope For More Ahead
Feb-07 11:16By: Keith Gyles
Mexico
Executive Summary
- Banxico’s governing board cut the overnight rate by 50bp to 9.50%, in line with most analyst forecasts. The decision was split, with one member voting for a smaller 25bp reduction.
- The Board highlighted the weakness of economic growth in the fourth quarter and the decline in headline inflation, and signalled further rates cuts ahead, potentially of a similar magnitude.
- Analysts expect the Board to deliver another 50bp cut in March, before potentially slowing the pace again, with year-end rate forecasts broadly ranging between 8.0-8.5%.
Click to view the full review: MNI Banxico Review - Feb 2025.pdf
