Banxico Cuts Rate in Split Vote, Declares Easing Cycle Over (2)

Mexico’s central bank opted to reduce borrowing costs, cutting its benchmark rate by a quarter point while announcing that its two-year easing cycle has come to an end.

The bank, known as Banxico, lowered its key rate by 25 basis points to a four-year low of 6.50% on Thursday. All 25 economists surveyed by Bloomberg had forecast the quarter percentage point cut.

The vote from Banxico’s five-member board was sharply divided for the second consecutive decision, however, with three members voting for the cut and two favoring a pause. But the bank was unusually blunt in its assessment that its ...