The Bank of Mexico (Banxico) has lowered its benchmark interest rate by 50 basis points to 8%, marking the fourth consecutive cut of this magnitude and the eighth consecutive reduction overall. This decision aligns with market expectations and reflects concerns over ongoing economic weakness, geopolitical disruptions, and inflationary pressures. Despite inflation rising from 3.93% to 4.51%, Banxico continues its easing cycle while acknowledging risks to the economy stemming from global trade tensions and uncertainty. The current rate level is the lowest in nearly three years. Banxico indicated it will consider further rate cuts depending on economic developments. The recent cut is part of a broader trend, with this being the ninth rate cut in the current cycle.