The Bank of Mexico eased monetary policy further on February 13, with policy-makers warning economic activity in the country has remained “stagnant” for “several quarters”.

The 25 basis point cut takes the policy rate to 7%. The rate is down from 8.25% when the current easing cycle began, in August 2019.

Officials highlighted “generalised weakness” in aggregate demand components, and said slack in the economy “continued to widen”.

Inflation is running slightly higher than previously