Banco de México cut its overnight interbank rate by 25 basis points to 11.00% at its March 2024 policy meeting, marking the first reduction in Mexican borrowing costs since 2021. The decision was taken by a 4-1 vote, with one board member dissenting in favour of holding rates unchanged.
FIRST EASING MOVE SINCE 2021
Banxico raised its overnight rate from a low of 4.00% in mid-2021 to a peak of 11.25% in response to a surge in Mexican inflation. The rate was held at or near that level throughout 2023.
Mexican headline inflation had been declining in the months leading into the March meeting. The board said future steps would depend on how inflation data and the external environment evolved.
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