MEXICO CITY, March 27 (Xinhua) -- The Central Bank of Mexico (Banxico) said Thursday it will again lower the benchmark interest rate amid the uncertainty generated by the changing economic policy in the United States.
Banxico's five-member Governing Board unanimously agreed to reduce the target overnight interbank interest rate by 50 basis points, to 9 percent, the bank said in its monetary policy statement.
"The Governing Board estimates that going forward it could continue calibrating the monetary stance and consider adjusting it by a similar amount," the statement said in deciding on the sixth consecutive rate cut.
The economic policy changes of the new U.S. administration have added uncertainty to forecasts, Banxico said, noting that the effects of the policy could put pressure on inflation on both sides of the balance sheet.
The growth outlook for global economic activity has been downgraded, including that for the U.S. economy, due in part to announcements of trade tariffs, the board noted.
In addition, global risks continue to be on the rise, such as escalating trade tensions and worsening geopolitical conflicts, with potential impacts on inflation, economic weakening, and volatility in financial markets, said the board.
For the Mexican economy, the environment of uncertainty and trade tensions "implies significant downside risks," it said.
