Bank of Mexico
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
Mexican Central Bank Rate Cut
March 28, 2025
The Bank of Mexico‘s overnight interbank rate has been cut another half percentage point to 9.0%, its lowest level since September 2022. There was a 50-basis point cut at the prior February review of monetary policy and five previous cuts of 25 basis points that began a year ago in March 2024. Mexican CPI inflation […] More
U.S. Personal Consumption Report and Many European Data Releases
March 28, 2025
Shortly before the release of U.S. personal income, PCE and the PCE price deflator this Friday morning, the dollar was showing overnight advances of 0.3% against the euro and peso, 0.2% versus the the Swiss franc and sterling, and 0.1% relative to the Canadian dollar. The dollar benefited from tariphobia. Uncertainty ahead of next Wednesday’s […] More
Awaiting U.S. Labor Market Figures for January
February 7, 2025
The dollar is standing firm ahead of this morning’s release by the Labor Dept of last month’s jobless rate, growth in employment, and wage inflation. The greenback rose overnight by 0.3% against the yen and Swissy, 0.2% versus the euro and loonie, and 0.1% relative to the Australian and New Zealand currencies. Sterling is unchanged. […] More
Bank of Mexico Doubles Size of Incremental Interest Rate-Cutting Cycle that Began Six Months Ago
February 6, 2025
Six months passed after Mexican consumer price inflation peaked at 8.7% in September 2022 before the Bank of Mexico’s overnight interbank interest rate reached its highest level of restraint. That rate was then left at 11.25% for a full year from March 2023 until an initial 25-basis point cut in March 2024. After then making […] More
Mexican Central Bank Rate Cut
December 20, 2024
The Bank of Mexico’s policy interest rate has been reduced by another 25 basis points to 10.0%. This was the fourth such cut since August and the fifth one since March. The rate had been at a peak of 11.25% for a year prior to that initial easing. The latest cut was made in reaction […] More
