Bank of Mexico Cuts Interest Rate by 25 Basis Points to 10% Effective December 20 Amid Slowing Inflation

Dec 19, 2024, 07:14 PM

The Bank of Mexico (Banxico) has unanimously decided to cut its benchmark interest rate by 25 basis points to 10.00%, effective December 20, 2024. This reduction marks the fourth consecutive cut for the central bank, which has now lowered rates five times throughout the year. The decision reflects a slowing inflation rate, with expectations that inflation will reach the target of 3% by the third quarter of 2026. Banxico's current rate is the lowest it has been since 2022. The central bank's actions indicate a cautious approach moving forward, particularly as inflationary pressures in the services sector remain a concern, potentially affecting future rate decisions in 2025.