The Board of Governors of the Bank of Mexico announced that they have decided to reduce the reference interest rate by 25 basis points to 10.75% effective from 9 August 2024.
The bank reported that heterogeneity in the dynamics of economic activity between countries has continued during the second quarter of 2024.
They noted that the US economy continued to expand at a faster pace than other advanced economies, and headline and core inflation continued to decline in most of these economies.
Among central banks in advanced economies, some reduced their reference rate while the Federal Reserve kept it unchanged, while Japan increased it.
Banxico estimates that financial markets in Mexico suffered from the volatility of international markets and the peso depreciated.
The yield curve of government securities showed downward movements, especially in the medium-term. In the second quarter, productive activity registered low growth, thus extending the weakness that it has exhibited since the end of last year.