Weekly Report - 18 February 2021 (WR-21-07)

MEXICO | Interest rate cut. Mexico’s central bank (Banxico) reduced its benchmark interest rate by 25 basis points, from 4.25% to 4%, on 11 February. The onset of the coronavirus (Covid-19) pandemic last year saw Banxico cut interest rates for six consecutive months in 2020, falling from 7% in March to 4.25% in September, to try and stimulate the domestic economy and ensure market liquidity amid a general fall in economic activity due to the pandemic.