Banxico expected to cut rates to 9% - Reuters

A Reuters poll revealed that on March 27, Banco de Mexico (Banxico) is expected to cut interest rates by 50 bps amid the evolution of the disinflation process and an ongoing economic slowdown.

Economists expect rates to get as low as 8.25% in 2025

Of 25 economists, 23 expect the central bank to lower borrowing costs by 50 bps, from 9.50% to 9.00%. The other two economists estimate the Mexican central bank will keep rates unchanged.

This would be the second rate cut of that size, following February's meeting in which the Governing Council approved reducing the main reference rate from 10.00% to 9.50% on a 4 to 1 vote split, with Deputy Governor Jonathan Heath dissenting, as he voted to reduce rates by 25 bps.

Even though Banxico's mandate is to control inflation, the recent economic slowdown prompted the Mexican institution to ease policy, as policymakers justified that as the economy cools, so it does inflation.

Alongside this, Mexico's economic docket is busy next week, with the release of March mid-month inflation, Retail Sales, and Trade Balance data.