Banco de Mexico Cuts Benchmark Rate by 50 Basis Points
Posted on 04/21/2020
With global oil prices crashes from the impact of the Wuhan coronavirus pandemic, Banco de Mexico (Bank of Mexico | also known as Banxico) announced around up to 750 billion Mexican pesos (US$ 30.8 billion) to support the country’s financial system. The central bank slashed its benchmark rate by 50 basis points. The rate cut was approved in a unanimous vote by the bank’s five-member governing board. The new overnight interbank interest rate stands at 6%.
Mexico already had fallen into recession in 2019.