MNI Banxico Review – May '25: 50BP Cut, Likely More on Horizon

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Executive Summary 

• Banxico’s governing board cut the overnight rate by a further 50bp to 8.50% in a unanimous decision, as was widely expected.
• The Board continued to emphasise the weakness of economic growth amid the uncertain external backdrop and signalled further rate cuts ahead, potentially of a similar magnitude.
• Analysts expect the Board to deliver another 50bp cut in June, with year-end rate forecasts currently ranging between 7.0-8.0%.