MNI Banxico Review – Mar 2025: 50bp Cut, Guidance Maintained
Mar-28 10:48By: Keith Gyles
Mexico
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Executive Summary
- Banxico’s governing board cut the overnight rate by another 50bp to 9.00%, in line with expectations. Importantly, the decision was unanimous, with Deputy Governor Heath voting in favour of the larger move this time.
- Once again, the Board highlighted the weakness of economic growth and decline of inflation, and signalled further rates cuts ahead, potentially of a similar magnitude.
- Analysts widely expect the Board to deliver another 50bp cut in May. Amid the dovish rhetoric, some analysts have revised their terminal rate forecasts for the easing cycle lower, with year-end rate forecasts broadly ranging between 7.5-8.0%.
