PrintBBVA Research Notes Mexico's Central Bank Signals More Rate Cuts to Come After Thursday's Reduction
BY MT Newswires | ECONOMIC | 09/26/25 06:48 AM EDT06:48 AM EDT, 09/26/2025 (MT Newswires) -- Mexico's central bank (Banxico) delivered a widely anticipated 25bps rate cut to 7.50% on Thursday, while signaling further room to ease amid the sluggishness of economic activity, said BBVA Research.
Banxico's modest inflation forecasts revisions signal a positive outlook, likely underpinned by a widening negative output gap, noted BBVA Research.
By keeping its forward guidance unchanged, Banxico signals its intent to keep easing, with rates still moderately restrictive after Thursday's cut.
BBVA Research maintains its view that the Board will deliver two more 25bps rate cuts this year, in November and December, bringing the policy rate to 7.0% by year-end.
BBVA Research thinks further easing toward at least the midpoint neutral estimate remains warranted in light of the continued weakness of domestic demand.
MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.
