On Thursday, the central bank of Mexico (Banxico) cut the key interest rate as expected by 50bps to 5%. Analysts at TD Securities, see two more 50bp cuts, followed by two 25bp cuts, bringing the rate to 3.50% by the end of the year. Key Quotes: “Banxico’s policy statement reads on the dovish side in terms of its changes from the May meeting. The growth outlook has been so impacted that Banxico stated that “greater economic slack is expected within the time frame in which monetary policy operates” and that the balance of risk for growth remains significantly biased to the downside. This implies a shift in view from the May meeting, which is logical give the large miss for recent economic data (from manufacturing, to trade, to retail sales), relative to already dour market expectations.” “It appears as though Banxico’s forecasted inflation trajectory has been slightly reduced, while risks to the downside remain a larger than expected output gap as well as global disinflation. To the upside risks are MXN-related volatility, logistical supply-shocks, and costs related to sanitary measures implemented to combat the spread of Covid.” “The outlook component of the statement remains relatively unchanged, which gives us confidence in maintaining our current policy rate forecast of two further 50bp cuts, followed by two 25bp cuts, that will bring the policy rate to 3.50% by end of year.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Fed’s George: A full recovery is still far off, despite strong job gains in May FX Street 2 years On Thursday, the central bank of Mexico (Banxico) cut the key interest rate as expected by 50bps to 5%. Analysts at TD Securities, see two more 50bp cuts, followed by two 25bp cuts, bringing the rate to 3.50% by the end of the year. Key Quotes: “Banxico's policy statement reads on the dovish side in terms of its changes from the May meeting. The growth outlook has been so impacted that Banxico stated that "greater economic slack is expected within the time frame in which monetary policy operates" and that the balance of risk for growth remains significantly biased to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.