Mexico’s central bank has lowered its benchmark interest rate following a split vote, as uncertainty surrounding the US-Israeli war on Iran continues to unsettle global markets.
Minutes from the Bank of Mexico’s May meeting showed the decision passed by a 3-2 vote, with policymakers warning the conflict is increasing inflation risks.
All five board members identified the war as a source of upward pressure on prices, though most said the direct effect on Mexico remains limited.
Officials also pointed to government fuel price controls as an important shield against rising energy costs linked to the conflict.
