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The Bank of Mexico has reduced its overnight interest rate by 25 basis points from 11.25% to 11.00%, marking its first rate cut since 2021 in a hawkish move. This decision, made by a four to one vote by its governing board, follows a similar action by the Swiss National Bank, suggesting a coordinated effort among central banks to lower rates amidst ongoing inflation concerns. Despite this rate cut, the bank has noted that inflation risks remain "biased to the upside," indicating cautious optimism in its monetary policy approach. This move places Mexico within a regional trend of monetary easing as inflation shows signs of slowing.
