Mexico delivers surprise interest rate cut
The Bank of Mexico cut its benchmark rate by 25 basis points to 6.25% from 6.50% on November 5, surprising a market that largely expected no change.
The decision passed by a 3–2 vote, with two board members preferring to hold rates. The bank described the move as a one-off adjustment.
The cut came despite annual inflation reaching 3.62% in the first half of October, highlighting policymakers' concern about economic growth. The peso faced additional depreciation pressure, while guidance suggesting an extended pause limited expectations of a sustained easing cycle.
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