situation report

Aug 16, 2019 | 14:41 GMT

1 min read

Mexico: Central Bank Cuts Overnight Lending Rate

What Happened: Mexico's central bank cut its overnight lending rate on Aug. 15 by 25 basis points to 8 percent, the lender said in a press release.

Why It Matters: The ongoing U.S.-China trade war and slow economic growth in Mexico have raised pressure on the central bank to ease its monetary policy. However, the bank is expected to remain cautious in future rate cuts instead of aggressively entering a new easing cycle.

Background: Mexico's rate cut comes amid a wave of global monetary easing by other central banks, including a recent U.S. Federal Reserve decision to lower its benchmark interest rate on July 31.

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