Mexico's central bank cuts rates by 50bp
The Bank of Mexico (Banxico) lowered its target overnight interbank interest rate by 50 basis points to 9% on March 27. The bank said the decision partly reflected a continued increase in “global risks”, including “various announcements on the imposition of tariffs”. Banxico pointed to how trade tensions and geopolitical turmoil could weaken economies, have a negative impact on inflation, and create volatility in markets. It said it expected the Mexican economy to exhibit weakness in the first quarter of this year and that uncertainty and trade tensions posed significant risks to domestic growth.