Mexico Central Bank Plans Further Rate Cuts Amid Economic Uncertainty

Mexico's central bank is signaling the possibility of further interest rate cuts as economic growth slows and inflationary pressures remain manageable. Deputy Governor Jonathan Heath has emphasized a likely continuation of rate reductions, citing stagnating economic indicators and global trade uncertainties, though he advises caution due to unpredictable conditions. Governor Victoria Rodriguez also expressed optimism about additional cuts if inflation aligns with expectations, but warned that external factors, such as a potential U.S. slowdown, could constrain Mexico's growth until 2025. The bank's recent unanimous decision to lower the benchmark rate to 9% reflects a shift toward a less restrictive monetary stance. This approach seeks to balance the need for economic support with prudence in the face of global risks, including U.S. tariffs and economic uncertainty. Overall, the central bank remains open to easing policy further, while closely monitoring both domestic and international developments.