MNI BRIEF: Banxico To Keep Cutting Amid Weak Activity - Ceja

Central Bank of Mexico Governor Victoria Rodríguez Ceja said Wednesday that the board expects to keep lowering its interest rate amid improvements in the inflation outlook and slowing economic activity.

"Considering the behavior we’ve observed in inflation, along with the effects of the restrictive stance we’ve maintained for many months and the weakness in economic activity, we anticipate that the inflation outlook will allow us to continue with this calibration process and proceed with the rate-cutting cycle," she said during a virtual presentation of the central bank’s quarterly economic update for the first quarter of 2025.

Banxico cut rates by 50 basis points earlier this month to 8.50%.

"The environment is uncertain, but I’d like to emphasize that there should be confidence that we are working and fully committed to fulfilling our primary mandate of price stability," Rodríguez Ceja added. (See MNI WATCH: Banxico Keeps Dovish Stance, Reaffirms Restrictive)