# Banxico Cuts 25bps as Expected USMCA in Play

> The Bank of Mexico cut its benchmark rate by 25 basis points to 7.75%, as widely expected, with two board members voting for a 50-basis-point cut. The same day, US House Speaker Pelosi said the House would move ahead on the USMCA trade deal to replace NAFTA. USD/MXN paused near technical resistance around 19.67 after the news.

- Date: 2019-09-26 · published 2019-09-26T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/57309-banxico-cuts-25bps-as-expected-usmca-in-play
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Mexico is a major buyer of US corn, sorghum and soymeal, so a weaker peso and progress on USMCA affect the cost and volume of those imports. Both developments are relevant to trade flows but have only a modest direct price effect.

## Sources

- forex.com: https://www.forex.com/en-uk/news-and-analysis/banxico-cuts-25bps-as-expected-usmca-in-play/

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