07:12 AM EDT, 09/24/2025 (MT Newswires) -- BBVA Research said it expects Mexico's central bank (Banxico) to deliver a 25bps rate cut on Thursday and to signal that the easing cycle still has room to continue.

BBVA Research thinks further easing toward at least the midpoint neutral rate estimate remains warranted amid a weak demand outlook.

In Mexico, economic data released since the last Banxico monetary policy meeting confirm that activity remains weak despite the temporary boost in Q2, stated BBVA.

The Q2 rebound in headline inflation has continued to unwind in Q3, while core inflation will likely ease as the balance between goods and services inflation normalizes, it added.

Dovish signals from Banxico Board members and supportive financial conditions suggest the policy environment remains conducive to further easing.

Against this backdrop, Banxico can continue guiding rates toward a more neutral stance without compromising its inflation target or financial stability anchors, according to BBVA Research.