Banxico Delivers Third Half-Point Cut as Growth Slows (1)

Mexico’s central bank cut borrowing costs by half a percentage point Thursday after the economy narrowly avoided falling into recession and inflation remained within the target range.

Banxico, as the bank is known, voted unanimously to lower its key rate to 8.5%, as expected by all 30 economists surveyed by Bloomberg. Seven consecutive rate reductions, including three straight half-point cuts, have trimmed the benchmark rate by 2.5 percentage points.

Board members led by Governor Victoria Rodriguez have grown increasingly concerned about the slowdown in Latin America’s No. 2 economy, which is just beginning to feel the full weight ...