The Bank of Mexico (Banxico) announced a reduction in its benchmark interest rate by 25 basis points, lowering it from 8.00% to 7.75%, effective August 8, 2025. This decision marks a moderation in the pace of monetary easing following four consecutive half-point cuts earlier in the year. The move was widely anticipated by analysts and reflects a response to a deceleration in inflation, which stood at 3.51% in July 2025. The decision was made by the Governing Board with a divided vote, including members Victoria Rodríguez Ceja, Galia Borja Gómez, and José Gabriel. Banxico indicated that while headline inflation forecasts have been revised downward, short-term core inflation projections have been adjusted upward due to a rebound in goods and services prices. The interest rate cut to 7.75% is the lowest level in three years and is expected to have implications for credit and savings in Mexico amid ongoing economic weakness and uncertainty linked to U.S. trade policies. The central bank signaled that there remains room for further reductions in the interest rate in the future.