MNI BRIEF: Banxico Cuts 50BP To 8.00%, Heath Votes For Hold

The Central Bank of Mexico decided to reduce its overnight interbank interest rate by another 50 basis points to 8.00% Thursday, with Deputy Governor Jonathan Heath voting in favor of holding rates at 8.50%.

The decision was in line with market expectations.

The board signaled more cuts ahead without mentioning the size of future moves. "Looking ahead, the Board will assess further adjustments to the reference rate. It will take into account the effects of all determinants of inflation," the English version of the statement said.

The previous decision stated they would "consider adjusting it in similar magnitudes."

Banxico still expects headline inflation to converge to the 3% target by the third quarter of 2026. "Actions will be implemented in such a way that the reference rate remains consistent at all times with the trajectory needed to enable an orderly and sustained convergence of headline inflation to the 3% target during the forecast period." (See MNI WATCH: Banxico To Ease 50BP Again To 8.00%, Likely Split)