Bank of Mexico
A Respite from the Storm
September 25, 2026
At the end of this hectic week, world investors are taking a breather. It’s been a light session from a data release standpoint, and folks await news from this final day of the two-day summit between the political leaders in China and the United States in NYC. A looming distraction in the background as been […] More
Awaiting U.S. Jobs Data and Deal to Reopen Hormuz
August 7, 2026
The dollar marked time overnight, with no net changes against the euro, loonie or its weighted DXY index, an uptick of 0.1% relative to sterling, and downticks of 0.1% versus the Australian dollar and Japanese yen. Bigger drops of 0.3% occurred against the Mexican peso, Indonesia rupiah and Swiss franc and of 0.5% relative to […] More
Last Bank of Mexico Interest Rate Cut
May 8, 2026
The Bank of Mexico’s interest rate cut announced later yesterday had been expected but was decided by the narrowest of margins, three ayes to two nos. The bank’s statement of explanation concedes “headline inflation expectations for the end of 2026 rose while those for longer terms remained relatively stable at levels above target. Headline inflation […] More
U.S. Equities Withstand a Renewed U.S./Iranian Clash and Now Await April Jobs Report
May 8, 2026
In the Bizzaro landscape that has surrounded the Hormuz Strait impasse, the biggest clash between the U.S. and Iran in the current cease-fire followed shortly after hopeful words from President Trump that a deal to reopen that critical water passage may be reached soon. The U.S. attack on Iranian drone facilities clearly deals a blow […] More
Bank of Mexico Resumes Interest Rate-Cutting Cycle
March 26, 2026
After holding it overnight interbank interest rate at 11.25% for the twelve months ending in March 2024, Bank of Mexico policymakers cut such by 125 basis points during the balance of 2024 and by a further 300 bps last year, reaching 7.0% after their final review in December. In February at their first meeting of […] More
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
