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Published on Friday, July 31, 2020

Banxico has the space to further relax monetary policy

Since the arrival of the coronavirus to Mexico, Banxico has reduced the monetary policy rate by 2 percentage points, bringing it from 7% to the current level of 5%. The central bank can still lower it by at least another two percentage points and bring it down to 3% without posing a risk for inflation.

Key points

  • Key points:
  • The U.S. Federal Reserve has lowered interest rates to zero and has also made the largest injections of liquidity in history
  • Banxico has a lot of room for maneuver. Should not miss it

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