Banxico Cuts Rate

Mexico’s central bank, Banxico, has cut the benchmark overnight lending rate from 7.50% to 7.25%, bringing it to an 18-month low. The market broadly expects the rate to drop to 7% by the end of the year, although economists have differed in their interpretations of Banxico’s latest statements regarding future cuts. Some believe the central bank will adopt a more aggressive stance and take the rate down to 6.75% by year-end.