{"source_url": "https://think.ing.com", "url": "https://think.ing.com/articles/mexico-another-small-emergency-rate-cut/", "title": "Mexico: Another (small) emergency rate cut", "top_image": "https://think.ing.com/uploads/hero/_w800h450/170809-image-bankofmexico.jpg", "meta_img": "https://think.ing.com/uploads/hero/_w800h450/170809-image-bankofmexico.jpg", "images": ["https://think.ing.com/uploads/hero/_w800h450/170809-image-bankofmexico.jpg", "https://think.ing.com/uploads/general/logo.hd.png", "https://think.ing.com/uploads/hero/_w320/placeholder-lion2.jpg"], "movies": [], "text": "Monetary policy remains unusually restrictive in Mexico\n\nMexico\u2019s central bank, for the second time in exactly one month, decided to reduce the policy rate during an off-schedule policy meeting. This is an unusual position for this central bank, which is seen as especially conservative, and it is surprising since policymakers have been particularly worried about the risk to financial stability stemming from credit-rating downgrades.\n\nSuch worries became reality, over the past month, when three major rating agencies downgraded the sovereign. This series of negative announcements culminated with Moody\u2019s decision, last Friday, to downgrade the sovereign and, more consequentially, move PEMEX into a sub-investment-grade category.\n\nBanxico\u2019s decision is less surprising when considering the fast-deteriorating economic activity outlook, which contrasts sharply with the relatively muted government reaction seen so far. In fact, when compared to its LATAM peers, the Mexican government continues to stand out for its relatively timid economic policy relief effort, both fiscal and monetary, in response to the coronavirus outbreak.\n\nMexico is likely to suffer one of the most severe recessions in the region. Banxico stated today that it expects economic activity to drop by 5% year-on-year during the first half of the year, but we expect full-year GDP growth expectations to drop further, possibly towards 7-8% in the nearer term.", "keywords": [], "meta_keywords": [""], "tags": ["Mexico central bank", "Mexico"], "authors": ["Gustavo Rangel"], "publish_date": null, "summary": "", "article_html": "", "meta_description": "Mexico\u2019s central bank surprised with an emergency 50bp rate cut today, as expectations of a collapse in economic activity intensified, following a\u2026", "meta_lang": "en", "meta_favicon": "https://think.ing.com/uploads/general/apple-touch-icon-57x57.png", "meta_data": {"viewport": "width=device-width, initial-scale=1", "description": "Mexico\u2019s central bank surprised with an emergency 50bp rate cut today, as expectations of a collapse in economic activity intensified, following a\u2026", "date_published": "2020-04-21", "copyright": "\u00a9 ING Groep N.V. All rights reserved.", "generator": "ING", "author": "Gustavo Rangel", "og": {"site_name": "ING Think", "type": "website", "title": "Mexico: Another (small) emergency rate cut", "description": "Mexico\u2019s central bank surprised with an emergency 50bp rate cut today, as expectations of a collapse in economic activity intensified, following a\u2026", "image": "https://think.ing.com/uploads/hero/_w800h450/170809-image-bankofmexico.jpg", "url": "https://think.ing.com/articles/mexico-another-small-emergency-rate-cut/"}, "twitter": {"card": "summary_large_image", "site": "@ING_Economics", "title": "Mexico: Another (small) emergency rate cut", "description": "Mexico\u2019s central bank surprised with an emergency 50bp rate cut today, as expectations of a collapse in economic activity intensified, following a\u2026", "image": "https://think.ing.com/uploads/hero/_w800h450/170809-image-bankofmexico.jpg", "widgets": {"theme": "light", "link-color": "#55acee", "border-color": "#55acee"}}, "article": {"author": "https://www.facebook.com/ING"}}, "canonical_link": "https://think.ing.com/articles/mexico-another-small-emergency-rate-cut/"}