Mexico

Mexico’s central bank will likely double the pace of monetary policy easing Thursday, delivering a half-point rate cut with inflation back in the target range, growth slowing and tariffs delayed, Bloomberg News reported. Banco de Mexico, known as Banxico, will cut its key rate by 50 basis points to 9.5%, according to 22 of 26 economists surveyed by Bloomberg. Three analysts see a fifth-straight 25 basis-point reduction and one expects no change.

President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking, the Associated Press reported. The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships.

Mexican President Claudia Sheinbaum said on Monday that tariffs with the United States are on hold for a month after a conversation with President Donald Trump in which she committed to putting more law enforcement on the U.S. border to stop the flow of drugs, Reuters reported. "Our teams will start working today in two areas: security and commerce," Sheinbaum wrote in a post on X that announced the pause in tariffs. Trump ordered the 25% tariffs on all Mexican goods over the weekend, with Mexico saying it would respond with tariffs of its own without detailing on what products.

Mexico’s annual inflation slowed slightly more than expected in early January, keeping in play chances of a bigger interest rate cut at the central bank’s next policy meeting, Bloomberg News reported. Official data released Thursday showed consumer prices rose 3.69% in the first two weeks of the month from the year before. Core inflation, which excludes volatile items such a food and fuel, came in at 3.72%, slightly above the 3.69% median estimate. Banxico, as the central bank is known, cut its key rate by quarter point for a fourth straight meeting to 10% last month.

Several members of Mexico’s central bank expressed concern about the inflationary impact of tariffs that could be imposed by US President-elect Donald Trump after he takes office on Jan. 20, Bloomberg News reported. Members of the Banco de Mexico board said that the 25% tariffs that Trump pledged in November to impose on Mexico and Canada have created additional uncertainty for the economy, according to the minutes of the Dec. 19 monetary policy decision published Thursday. Despite the board’s willingness to forge ahead with cuts, tariffs and other factors led to notes of caution.

After complaints by billionaire Ricardo Salinas Pliego’s companies, prosecutors in Mexico have been seeking the arrest of family members associated with what was one of the country’s biggest shadow banks, Bloomberg News reported. Almudena Lebois, a former board member of Unifin Financiera SAB and daughter of the founder, was arrested late last week on charges of attempted fraud before a state of Mexico judge dismissed the case. Court records show the charges were sparked by allegations from a company owned by Salinas.

Mexico cut interest rates for a fourth straight meeting Thursday as inflation is slowing back to target and the economy is losing momentum, Bloomberg News reported. Banxico, as the central bank is known, lowered borrowing costs by a quarter-point to 10% in an unanimous decision. The move was forecast by 21 of 29 economists surveyed by Bloomberg. The remaining eight predicted that the bank would accelerate the pace of easing with a half-point cut.

Mexico’s headline inflation slowed slightly more than expected in November, boosting the odds of a fourth straight interest rate cut at the central bank’s meeting next week, Bloomberg News reported. Official data released Monday showed consumer prices rose 4.55% from a year prior, under both the 4.6% median estimate of economists surveyed by Bloomberg and the 4.76% reading in October. Monthly inflation stood at 0.44%.

Mexico’s finance ministry is preparing to enlist a consortium of banks to provide financing that Petroleos Mexicanos would use to pay off debt with service providers, according to a recording of remarks made by its CEO, Bloomberg News reported. The state-owned oil company is coordinating with the finance ministry, which would potentially take on debt on its behalf to pay the service contractors, Chief Executive Officer Victor Rodriguez said at a private event on Friday hosted by Mexico’s College of Petroleum Engineers.