LatinNews Regional Monitor: Mexico - 22 April 2020

* Mexico’s central bank (Banxico) has cut the benchmark interest rate by 50 basis points to 6% in an effort to address the economic challenges stemming from the coronavirus (Covid-19) pandemic. Banxico has also announced further measures to inject liquidity into the financial system, amounting to M$750bn (US$30.8bn), with the sum of all measures taken so far accounting for some 3.3% of GDP. In a statement, Banxico explained that the measures were intended to “encourage order in financial markets, bolster credit channels, and provide liquidity for the healthy development of the financial system,” amid estimates that GDP in the first semester of 2020 could contract over 5% compared with the same period in 2019. 

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