Mexican central bank cuts rates despite rise in inflation

Mexico’s central bank cut interest rates by 50 basis points to 5% after its policy meeting on June 25.

The unanimous decision follows three other 50bp rate reductions since the beginning of the Covid-19 crisis – these past cuts were implemented in March, April and May.

Since its previous rate cut on May 14, the peso has appreciated and government bond yields have decreased, notes the policy statement. However, global and local financial conditions remain subject to the effects of the pandemic