Bank of Mexico Lowers Interest Rate

MEXICO CITY (Reuters) – The Bank of Mexico reduced its benchmark interest rate by 25 basis points to 10.25%, marking the third consecutive rate cut as core inflation eases in the economy.

Analysts, in a Reuters poll, overwhelmingly anticipated this 25-basis-point cut, following a similar reduction by the U.S. Federal Reserve.

In their decision announcement, Banxico noted an improved inflation outlook, with the core inflation rate expected to continue decreasing. In October, core inflation slowed to 3.80% compared to 3.91% in September, excluding volatile energy and food prices.

In contrast, Mexico's annual headline inflation ticked up to 4.76% in October from 4.58% in September. Banxico aims for a target of 3% headline inflation, with a margin of one percentage point.