Banxico Cuts 50 Bp and Points to Another in June

El Financiero

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Last week, the Bank of Mexico reduced the reference rate by 50 basis points to 8.50 percent, as was widely anticipated (“Space to continue reducing the monetary constraint in Mexico”, May 13). Despite some speculation that we could have observed one or two dissenting votes in different directions, the decision was unanimous.

revistafortuna.com.mx

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Read time approx.: 2 minutes, 51 secondsThe governor warned that the environment of uncertainty and policy changes could generate upward pressures on inflation if the exchange rate depreciates, or if inputs are expensive. A possible lower economic activity could also involve risks in the opposite direction, so the path of effects is uncertain.

Arena Pública

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Banxico’s strategy: flexibility or complacency? Banxico continues to lower the reference rate at a rate that, for many, is beginning to seem hasty. On May 15th, for the third time so far this year, the central bank cut its reference rate by 50 basis points, leaving it at 8.5%. The most striking thing was not the cut itself, but the message it left between the lines: they are open to continue along that path, with at least an additional cut of th…