The central bank of Mexico (Banxico) announced on Thursday that it lowered its benchmark interest rate by 25 basis points to 4.25%. In its statement, Banxico noted that the board was unanimous on the rate decision, as reported by Reuters. Key takeaways from the policy statement “Balance of risks for the projected trajectory of inflation remains uncertain.” “Ample slack conditions expected throughout the time frame in which monetary policy operates.” “Headline inflation expectations for the end of 2020 rose; those for the medium and long terms remained stable at levels above 3% target.” “Challenge for monetary policy posed by pandemic include both the significant impact on economic activity as well as a financial shock and their effects on inflation.” “Environment of uncertainty and downward risks prevail despite the economy beginning to recover in June and July.” “Headline and core inflation are expected to be around 3% within the 12-24 month forecast horizon.” Market reaction With the initial reaction, the USD/MXN pair recovered modestly from daily lows and was last seen losing 1.35% at 22.0725. 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 GBP/USD bulls stepping in at weekly support despite COVID risks FX Street 2 years The central bank of Mexico (Banxico) announced on Thursday that it lowered its benchmark interest rate by 25 basis points to 4.25%. In its statement, Banxico noted that the board was unanimous on the rate decision, as reported by Reuters. Key takeaways from the policy statement "Balance of risks for the projected trajectory of inflation remains uncertain." "Ample slack conditions expected throughout the time frame in which monetary policy operates." "Headline inflation expectations for the end of 2020 rose; those for the medium and long terms remained stable at levels above 3% target." "Challenge for monetary policy posed by pandemic… 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.