Investing.com -- The Bank of Mexico, also known as Banxico, is predicted to lower its benchmark interest rate by 50 basis points in the coming week, according to a Reuters survey of economists. The adjustment, which is expected to take place at the bank’s meeting on March 27, will bring the rate down to 9.00%.
This forecast was made by 23 out of 25 analysts who participated in the survey. The remaining two analysts anticipate that the central bank will maintain its current rate. The predicted cut follows a similar reduction of 50 basis points in February, part of an ongoing rate-cutting cycle that began last year when the rate stood at a record 11.25%.
The decision to lower the interest rate comes in the context of slowing inflation and a weak economic outlook for Mexico. Furthermore, the analysts’ median forecast suggests that the key rate will stand at 8.25% by the end of the year, indicating that further cuts may be on the horizon.
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