MEXICO | Banxico cuts interest rate again. On 6 November Mexico’s central bank (Banxico) lowered its benchmark interest rate by 25 basis points to 7.25%, following two rate cuts of the same size in September and August. In a statement explaining its decision, Banxico noted that economic activity contracted in the third quarter as compared to the previous quarter and that an “environment of uncertainty and trade tensions continues to pose significant downside risks”. It noted that between the first two weeks of September and the first half of October, headline inflation decreased from 3.74% to 3.63%, while core inflation dropped marginally from 4.26% to 4.24%.
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