MNI BRIEF - All Banxico Members Highlighted US Risks - Minutes

All members of the Central Bank of Mexico’s board highlighted economic perils linked to deepening uncertainty surrounding U.S. trade policy, according to the minutes of the latest policy meeting released Thursday.

Most members mentioned that the interest rate differential with the U.S. has remained high. The board reiterated that it may continue to calibrate the monetary policy stance and consider adjusting borrowing costs “in similar magnitudes.”

“Most members indicated that the balance of risks for economic activity remains tilted to the downside. All members highlighted the risks associated with a possible intensification of uncertainty regarding U.S. trade policy,” the document stated.

Banxico cut its interest rate by another 50 basis points to 8.50% this month and signaled it would deliver at least one more cut of the same magnitude at its next meeting in June. (See MNI EM INTERVIEW: Banxico To Cut 50BP If Inflation Allows -Guzman)

The U.S. Court of International Trade Wednesday injected a fresh dose of uncertainty into U.S. trade policy by deeming a large portion of President Donald Trump's tariffs illegal.