MEXICO CITY (Reuters) -There is still room for Mexico’s central bank to lower its benchmark interest rate, deputy governor Jonathan Heath said in a podcast with lender Banorte published on Wednesday.
Last month, the Bank of Mexico cut its interest rate 50 basis points to 9% in a unanimous decision, while its board also warned of uncertainty linked to trade tensions worldwide.
Heath added that it was highly likely that the monetary authority would continue lowering the rate, while maintaining caution amid an uncertain economic scenario.
Speaking about the current economic uncertainty linked to tariffs imposed by the U.S. government, Heath noted that “in the face of all these risks, we are still underpinning a restrictive monetary stance, but less and less restrictive than we had previously anticipated.”
He added that all scenarios considered by the central bank expected a slowdown in Mexico’s economy, as well as in the United States.
(Reporting by Ana Isabel Martinez and Aida Pelaez-Fernandez; Editing by Kylie Madry)
