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LatinNews Daily - 12 February 2021

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In brief: Mexico’s central bank cuts benchmark interest rate

* Mexico’s central bank (Banxico) has reduced its benchmark interest rate by 25 basis points, from 4.25% to 4%. The onset of the coronavirus (Covid-19) pandemic last year saw interest rates cut for six consecutive months in 2020, falling from 7% in March to 4.25% in September, to try and provide liquidity to the domestic market. After holding steady for several months, Banxico has now announced a further cut, to the lowest level since June 2016, citing risks posed to the country’s economy by “increasing [Covid-19] infections and delays in the production and distribution of vaccines”.