Banxico Lowers Interest Rate to 8.5%

The Bank of Mexico (Banxico) has decided to implement a new adjustment to the interest rate, lowering it by 50 basis points. This is the seventh adjustment made by the central bank, as it noted that inflation is on a downward trend.

In April, inflation rose to 3.93%, compared to the 3.80% recorded in March. This recent increase in inflation has been particularly noticeable in core prices, where service costs have shown consistent behavior, while there has also been a rebound in the prices of goods. Both Governor Victoria Rodríguez and Deputy Governor Jonathan Heath have indicated that the inflationary context would allow them to move forward with the reduction of the interest rate.

Banxico's decision to lower the interest rate could stimulate consumption and investment in the Mexican economy. However, it is crucial for consumers and businesses to keep a close watch on prices, as the recent rise in inflation could create uncertainty in the future. This underscores the importance of making informed financial decisions to mitigate potential risks.