The Central Bank of Mexico Cuts Interest Rates

The Central Bank of Mexico has cut the country’s interest rates by 50 basis points, to a level of 4.5%, which is the lowest recorded since September 2016, when it stood at 4.75%, according to reported in a statement.

The issuing institute has framed this reduction in the coronavirus pandemic and its derived effects on the Aztec economy. Specifically, it has indicated that multilateral organizations and analysts anticipate a strong contraction for 2020 and moderate growth in the next year, although, the entity warns, such forecasts are subject to a “high degree of uncertainty.”

Likewise, the institution points out that as of June a recovery was observed starting from the low levels of activity of the preceding months, as a consequence of the reopening of some sectors, the relaxation of mobility restrictions and a certain recovery in external demand.

At the same time, the entity stresses that economic activity in the North American country had a deep contraction of 18.5% in the second quarter, as a reflection of the measures deployed to contain the viral outbreak.

 

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The Central Bank of Mexico Cuts Interest Rates - /10

Summary

The Central Bank of Mexico has cut the country's interest rates by 50 basis points, to a level of 4.5%, which is the lowest recorded since September 2016, when it stood at 4.75%, according to reported in a statement.

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