Mexico’s central bank, Banxico, cut its policy rate by 50 basis points to 5% on Thursday. In its policy statement, Banxico noted that the balance of risks to growth was significantly tilted downwards. Key takeaways “Balance of risks for inflation remains uncertain.” “Expectations for headline inflation for end 2020 still at levels close to the target.” “Expectations for headline inflation for medium, long-term have remained relatively stable, but at levels above 3% target.” “Upside risks to inflation include additional depreciation in forex.” “Economic activity contracted significantly during the first quarter, available information indicates the impact of pandemic intensified in April.” “Other upside risks to inflation include logistical problems in the supply of certain goods and services linked to the pandemic.” “Reopening of some economic sectors in May, June will foster a slight recovery of economic activity, but the impact has been of considerable magnitude, uncertainty persists.” Market reaction The USD/MXN pair edged slightly higher on this announcement and was last seen trading at 22.7600, where it was virtually unchanged on a daily basis. 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 NZD/USD: Weaker dollar overall to be supportive, but pair not likely to reach 2020 highs – CIBC FX Street 2 years Mexico's central bank, Banxico, cut its policy rate by 50 basis points to 5% on Thursday. In its policy statement, Banxico noted that the balance of risks to growth was significantly tilted downwards. Key takeaways "Balance of risks for inflation remains uncertain." "Expectations for headline inflation for end 2020 still at levels close to the target." "Expectations for headline inflation for medium, long-term have remained relatively stable, but at levels above 3% target." "Upside risks to inflation include additional depreciation in forex." "Economic activity contracted significantly during the first quarter, available information indicates the impact of pandemic intensified in April."… 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.
