# Bank of Mexico eases again to combat ‘stagnant’ economy - Central Banking

> The Bank of Mexico cut its policy rate by 25 basis points to 7% on February 13, its first cut under the new communications regime. Policymakers described economic activity as stagnant for several quarters and said slack in the economy continued to widen.

- Date: 2020-02-14 · published 2020-02-14T12:00:00.000Z
- Category: macro · region Mexico · magnitude medium
- Page: https://feedsoft.ai/events/54794-bank-of-mexico-eases-again-to-combat-stagnant-economy-central-banking
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Lower Mexican interest rates tend to weaken the peso, which raises the local cost of imported feed grains and meal. Weak domestic demand also points to softer livestock and poultry feed use.

## Read by commodity

- USDMXN: bullish ▲

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/monetary-policy/monetary-policy-decisions/4719126/bank-of-mexico-eases-again-to-combat-stagnant-economy

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.