Bank of Mexico
Another Interest Rate Cut by the Bank of Mexico
December 18, 2025
A cycle of a thirteen interest rate cuts by the Bank of Mexico began a year and a half ago from a peak of 11.25%, with five initial reductions of 25 basis points, then four larger 50-basis point moves and after than a reversion to four more cuts of 25 bps. The bank’s medium-term inflation […] More
Another Mexican Central Bank Interest Rate Cut
November 7, 2025
In Mexico where inflation of 3.8% is within the 2-4% target window and real GDP has lately contracted, the Bank of Mexico late yesterday implemented another basis point cut. The 25-basis point move was the twelfth since March 2024, joining 7 other cuts of that size plus four cuts of 50 basis points each. At […] More
Confusion Caused by U.S. Federal Shutdown Intensifies in Two Directions
November 7, 2025
Every day now brings a new record duration in the current U.S. federal government shutdown. Neither political side of the stalemate has found an advantageous way to compromise without appearing to lose. The pain level took a big step upward yesterday when the Transportation Department ordered significant reductions in scheduled flights. Cancelled flights were the […] More
Mexican Central Bank Interest Rate Cut
September 26, 2025
As was expected, the Bank of Mexico late yesterday cut the overnight interbank rate by another 25 basis points to 7.5%. That brought its cumulative drop during 2025 to 250 basis points on top of 125 basis points of easing in 2024. The peak rate from March 2023 to March 2024 had been 11.0%. Mexican […] More
Tariff News Back in the Spotlight Along with A Looming U.S. Federal Government Shutdown
September 26, 2025
President Trump has unveiled several fresh tariff hikes, including a levies of 100% on imported pharmaceuticals, 25-50% on bathroom vanities and kitchen cabinets, and 25% on long trucks. China and other Asian economies are seen as particularly vulnerable. The EU is raising its tariff on Chinese steel. Oddsmakers foresee a big likelihood of a U.S. […] More
Gold, Oil, Dollar and Stocks Up, but Bond Prices and Bitcoin Down
August 8, 2025
Gold rose 0.8% overnight as gold bar imports were added to the reciprocal tariff list. The price of WTI oil firmed 0.5%, whereas Bitcoin’s cost slipped by 0.5%. U.S. stock markets opened moderately higher in contrast to declines of other stock markets this Friday amounting to 1.8% in India, 0.4% in Singapore, 0.6% in South […] More
Fourth Straight Mexican 50-Basis Point Central Bank Rate Cut
June 27, 2025
Canadian monthly industrial production and GDP respectively contracted in April by 0.1% and 0.9%, respectively. The Bank of Mexico lowered the overnight interbank interest rate by an as-expected 50 basis points after yesterday’s scheduled policy meeting. The 4-1 decision drew one dissent against changing the rate’s level. Half-percentage point cuts had also been undertaken in […] More
U.S. Trade Deals With China and India, Rising Fed Interest Rate Cut Hopes & Many Data Releases
June 27, 2025
President Trump is on a winning streak. A drumbeat of successes during the past fortnight — a successfully executed military mission in Iran, the Iranian-Israeli cease-fire, some favorable court rulings, NATO’s defense spending agreement, reported trade deals, and Powell’s more dovish-than-expected testimony — have deflected attention from the fiscal undertow and consequently enhance the chances […] More
Japanese GDP and U.S. Import Price Surprises
May 16, 2025
A 0.7% annualized contraction of Japanese GDP between the final quarter of 2024 and the first quarter of this year was steeper than analysts were predicting. U.S. import prices, which had been projected to decline in April, instead edged 0.1% higher. A 2.6% drop in fuel costs was outweighed by a bigger than expected 0.4% […] More
Bank of Mexico’s Sixth Interest Rate Cut Since March 2024, and More Are Likely
May 15, 2025
Today’s half percentage point cut of Mexico’s overnight interbank interest rate had been expected and was agreed upon by everyone on the Bank of Mexico Governing Board. To counter the spike in inflation that crested at 8.7% in September 2022, the central bank policy interest rate had been lifted to 11.25% by March 2023 and […] More
