Bank of Mexico lowers interest rate to 7.25%, cites concerns

Mexico’s central bank has lowered its benchmark interest rate by a quarter-point to 7.25%

MEXICO CITY -- Mexico’s central bank lowered its benchmark interest rate by a quarter-point from 7.5% to 7.25%. on Thursday, citing a sluggish global economy and continued weakness for the country’s own outlook.

But it said uncertainty remains about things such as debt ratings for the country and state oil company Pemex.

“While the information available for the fourth quarter of 2019 is limited, it is estimated that the weakness (Mexican) economic activity has been recording for several quarters will persist,” the bank said in a statement.

The first three quarters under Mexican President Andrés Manuel López Obrador, who took office in December 2018, were marked by GDP growth around zero.