FOREX TradingCharts.com

Financial News: Mexico Central Bank Cuts Rate Again On High

Mexico Central Bank Cuts Rate Again On High Inflation, Weak Economy

09/25/2025 - 17:15:00 (RTTNews)

(RTTNews) - The Bank of Mexico cut its key interest for a tenth policy session in a row, on Thursday, in a bid to support the sluggish economy amid high inflation and the heightened uncertainty posed by the U.S. trade tariffs.

The Banxico Governing Board, led by Governor Victoria Rodríguez Ceja, decided to lower the target for the overnight interbank interest rate by 25 basis points to 7.50 percent, in line with expectations. The previous change was a similar reduction in August that followed four half-points cuts since the start of the year.

The central bank has cut interest rates by a total 350 basis points since August last year.

The latest rate cut was decided in a split vote of 4-1 with Deputy Governor Jonathan Heath again opting to maintain the rate unchanged.

"The Governing Board deemed appropriate to continue the rate-cutting cycle," the bank said in a statement. "This decision was consistent with the assessment of the current inflationary outlook."

Policymakers considered a stronger peso, the sluggish economic activity, and the possible impact of changes in trade policies worldwide as well as the latest Fed rate cut and the likelihood of more easing.

"Looking ahead, the Board will assess further adjustments to the reference rate," the bank said.

Statistical data released on Wednesday showed that headline inflation accelerated to 3.74 percent in the first half of September. Inflation was 3.57 percent in the month of August.

Core inflation that excludes volatile items such as food and energy, climbed to 4.26 percent.

Banxico targets inflation of 3.00 percent. In the latest projections, released on Thursday, the central bank raised the core inflation forecast for the fourth quarter of this year to 4.00 percent from 3.70 percent. The rate is seen returning to the target by the third quarter of next year.

"Economic activity exhibited sluggishness at the beginning of the third quarter of 2025," the bank observed. "The environment of uncertainty and trade tensions poses significant downward risks."

<a href=https://www.rttnews.com/3568432/mexico-gdp-grows-less-than-estimated-in-q2.aspx?refresh=1 target=_blank >The Mexican economy expanded 0.6 percent in the second quarter</a>, following a 0.3 percent growth in the first three months of the year.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Sweden Retail Sales Rise 0.1% (14 min(s), 50 sec(s) ago)
(RTTNews) - Sweden's retail sales expanded for the fourth straight month in September, though ...Full Story»

French GDP Growth Accelerates Unexpectedly (49 min(s), 50 sec(s) ago)
(RTTNews) - France's economic growth accelerated in the third quarter despite political uncert ...Full Story»

Finland GDP Shrinks 0.1% In Q3 (01 hr(s), 14 min(s), 50 sec(s) ago)
(RTTNews) - Finland's economy contracted for the second straight quarter in the three months ...Full Story»

Dutch Producer Confidence Improves Further In October (01 hr(s), 48 min(s), 50 sec(s) ago)
(RTTNews) - Confidence among manufacturers in the Netherlands strengthened in October to the highe ...Full Story»

Bank Of Japan Keeps Key Rate On Hold (01 hr(s), 53 min(s), 50 sec(s) ago)
(RTTNews) - The Bank of Japan left its interest rate unchanged even as inflation continued to rema ...Full Story»

Bank Of Japan Keeps Key Rate Unchanged (03 hr(s), 21 min(s), 50 sec(s) ago)
(RTTNews) - The Bank of Japan left its interest rate unchanged on Thursday, and kept its real grow ...Full Story»

Japan Rate Decision On Tap For Thursday (47 min(s), 10 sec(s) ago)
(RTTNews) - The Bank of Japan will wrap up its monetary policy meeting on Thursday and then announ ...Full Story»

Fed Announces Widely Expected Decision To Cut Rates By Another Quarter Point (25 min(s), 10 sec(s) ago)
(RTTNews) - After cutting interest rates for the first time this year in September, the Federal Re ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Sweden Retail Sales Rise 0.1%

10/30/2025 - 04:02 AM (RTTNews)
(RTTNews) - Sweden's retail sales expanded for the fourth straight month in September, though ...Full Story>>

French GDP Growth Accelerates Unexpectedly

10/30/2025 - 03:27 AM (RTTNews)
(RTTNews) - France's economic growth accelerated in the third quarter despite political uncert ...Full Story>>

Finland GDP Shrinks 0.1% In Q3

10/30/2025 - 03:02 AM (RTTNews)
(RTTNews) - Finland's economy contracted for the second straight quarter in the three months ...Full Story>>

Dutch Producer Confidence Improves Further In October

10/30/2025 - 02:28 AM (RTTNews)
(RTTNews) - Confidence among manufacturers in the Netherlands strengthened in October to the highe ...Full Story>>

Bank Of Japan Keeps Key Rate On Hold

10/30/2025 - 02:23 AM (RTTNews)
(RTTNews) - The Bank of Japan left its interest rate unchanged even as inflation continued to rema ...Full Story>>

Do not sell my personal information

Copyright © 2025. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.