06:53 AM EDT, 09/27/2024 (MT Newswires) -- Mexico's central bank Thursday lowered its policy rate by 25 bps for the second consecutive meeting to 10.50%, noted BBVA Research.

In view of the lags of monetary policy, the restrictive stance is set to continue to weigh on the economy in the coming quarters, stated BBVA Research.

The wording of the Banxico statement turned more dovish but remained cautious, forward guidance signaled more confidence about the rate cut cycle going forward, it added.

BBVA Research expects two more 25bps rate cuts, in November and December 2024, to 10.00%. Its 2025 year-end forecast of 7.50% is below consensus expectations.