MEXICO CITY — Mexico’s central bank says it is lowering its benchmark interest rate by a quarter-point to 8%, citing slowing global economic activity and tensions including the trade war between the United States and China.
The Bank of Mexico says “the risks that the global economy faces have increased,” and also mentions commercial disputes, the “disorderly” Brexit process and deterioration of “some political and geopolitical risks.”
It said Thursday in a statement that uncertainty persists over the U.S.-Mexico relationship as well as downgrades to ratings of state oil company Pemex and sovereign debt.
The Dow Jones Industrial Average had its biggest single-day drop of the year on Wednesday amid mounting fears of a possible recession and weak economic data from Germany and China.
Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.