Bank of Mexico’s Fourth Interest Rate Cut since August
December 19, 2019
The four 25-basis point central bank rate cuts in 2019 reverse the four hikes made in 1918, but the new 7.25% overnight interbank rate level is still four percentage points higher than the end-2015 level. A released statement explaining today’s rate reduction cites continuing sluggish growth, a weak economic outlook, growth and inflation risks skewed to the downside in spite of the recent USMCA trade pact, and persistent uncertainties.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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