USD/MXN Bounces as Bank of Mexico Elects to Cut Rates by 0.25%
2021-02-11 19:00:00
Brendan Fagan,
Izaac Brook,
Bank of Mexico cuts rates by 25 bps to 4.00% in a unanimous decision
Rate cut comes as Mexican economy struggles and remains frail
USD/MXN bounced in immediate trade following the release
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The Bank of Mexico unanimously decided to cut interest rates by 25 bps to 4.00% after meeting on Thursday. The decision was in line with expectations, as a cut of 25 bps was foreseen as extremely likely given recent economic weakness in Mexico. The rate cut comes as the Mexican economy experienced its worst year since the Great Depression, with economic activity declining by 8% as a result of the pandemic.
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