México Tasa De Interés

The Bank of Mexico cut its benchmark interest rate by 50bps to 9.50% in February, in a majority decision. This aligns with the global disinflation trend, though inflation remains persistent in major economies, particularly in services. Domestically, economic activity contracted in Q4 2024 and is expected to weaken in 2025, with employment slowing and downside risks persisting. Headline inflation fell to 3.69% in mid-January 2025, while core inflation stood at 3.72%. While core inflation continues to trend downward, persistent services inflation led Banxico to maintain its inflation forecasts, expecting headline inflation to converge to the 3% target by Q3 2026. The bank indicated that further rate cuts may be appropriate, depending on the pace of disinflation and economic outlook.