The Bank of Mexico cut the policy rate in an unscheduled meeting on March 20, anticipating the grave economic damage the Covid-19 crisis is expected to have in the country.

The executive board reduced the interbank rate by 50 basis points to 6.5%. The board will meet again later this week for a regular monetary policy meeting on March 26.

“The effects on the economic activity that would stem from the pandemic, in a context of greater weakness of the global economy, led to a deterioration of