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The Central Bank of Mexico (Banxico) on Thursday announced that lowered its benchmark interest by 25 basis points to 7.5% and noted that the monetary policy decision was not unanimous with two members voting for a 50 bps rate cut to 7.25%.  

“The balance of risk to growth remains tilted downwards,” Banxico said in its statement. “Among risks which could affect performance of Mexican assets are uncertainty over bilateral relations between Mexico and the United States.  Risks also include Pemex and Mexico’s sovereign debt rating.”

With the initial reaction, the USD/MXN pair fell sharply and was last seen trading at 19.3665, still up 0.1% on a daily basis.