MNI BRIEF: Banxico Considering Additional Rate Cuts - Gov Ceja

Central Bank of Mexico Governor Victoria Rodriguez Ceja said Friday policymakers are still considering further interest rate cuts and said the board’s decision to cut by a quarter point this month was underpinned by increasing slack in a slowing economy. 

"Going forward, we will consider additional cuts to the reference rate, taking into account all the effects of the determinants of inflation," she said during a virtual presentation of the central bank’s quarterly economic update for the second quarter of 2025.

Banxico slowed the pace of its easing this month, reducing its overnight interbank rate 25 basis points to 7.75% and signaling more cuts ahead without specifying the size. Deputy Governor Jonathan Heath dissented in favor of holding.

"In our decisions, we have taken into account the slack conditions in the economy given the weakness economic activity has been showing," she said. (See MNI INTERVIEW: Banxico To Cut Once More And Hold - Covarrubias)