Bank of Mexico Cuts Rates for Fourth Time in a Row

Central bank lowers overnight rate to 7.25%, bringing borrowing costs to lowest level in two years

MEXICO CITY—The Bank of Mexico cut interest rates Thursday for the fourth consecutive time香蕉视频苹果下载 since August, in an effort to boost a faltering economy while inflation is under control.

香蕉视频苹果下载The central bank lowered the overnight interest-rate target by a quarter percentage point to 7.25%, bringing borrowing costs to their lowest level in two years.

香蕉视频苹果下载In a split vote, one of the bank’s five board members voted for a larger half percentage-point cut. The previous two rate cuts saw two members calling for a more aggressive move.

In a statement Thursday, the central bank said monetary policy must be carried out “prudently if for any reason the uncertainty faced by the economy increases significantly.”

香蕉视频苹果下载Thursday’s move narrowed the spread between Mexican and U.S. rates, since the Federal Reserve kept rates steady at its meeting earlier this month. Most analysts bet the easing cycle in Mexico will continue in the coming months at a moderate pace. The consensus sees the interest rate at 6.5% by the end of next year, according to a recent survey among private economists.

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