August 16, 2019 |
Mexico's central bank, Banxico, said it has cut the benchmark interest rate by 25bp to 8%, citing a slowing economy and uneasy relations with the United States.
The bank's monetary policy committee had not lowered the policy rate since 2014. One director voted to keep the rate at 8.25%, Banxico said in a statement.
Banxico pointed out that central banks in larger economies have kept rates low, including the US Federal Reserve, and as a result the rates on Mexico's government bonds have fallen.
Banxico lowers the policy rate to 8% on lower inflation and slower economic growth