Bank of Mexico cuts key interest rate 25 basis points to 11%

MEXICO CITY (Reuters) - The Bank of Mexico cut its benchmark interest rate by 25 basis points to 11.00% on Thursday, in a four to one decision by its governing board, marking the first rate reduction since the bank embarked on a tightening cycle in 2021.

Banxico, as the Mexican central bank is known, said it will thoroughly monitor inflationary pressures and that at its next monetary policy meetings, "it will make its decisions depending on available information."

Voting in favor of the quarter percentage rate cut were Banxico governor Victoria Rodriguez and deputy governors Galia Borja, Jonathan Heath, and Omar Mejia. Meanwhile, deputy governor Irene Espinosa voted to hold the rate at 11.25%.

Analysts polled by Reuters had overwhelmingly predicted the board would cut the rate, though they did not predict the start of an aggressive rate cycle.

(Reporting by Valentine Hilaire and Anthony Esposito; Editing by Sarah Morland)