Mexico's central bank will likely cut its benchmark interest rate by 50 basis points later this week, taking it to 9.50%, a Reuters poll showed on Wednesday, as inflation cools and the economy notched a slight contraction late last year.

The Bank of Mexico opted for the steepest interest rate cut yet in its current cycle of monetary easing, citing weakness in the country’s economy and a continued decline in inflation.

Citing weakness in the economy, Banxico voted 4-1 to again to bring down Mexico's benchmark interest rate, this time by a half point.

Mexico's annual inflation rate slowed slightly more than expected in January, official data showed on Friday, after the central bank accelerated the pace of its interest rate cuts and signaled more monetary easing ahead.

Mexico s central bank on Thursday announced a half percentage point cut to its benchmark interest rate, to 9.5 percent, noting growing

Mexico’s inflation slowed more than expected in January, supporting the central bank’s decision to deliver a half-point cut to its benchmark interest rate and signal additional reductions of the same magnitude.

Mexico's annual inflation rate likely slid to its lowest level in four years in January, a Reuters poll of analysts predicted on Thursday, boosting bets the central bank will continue to lower borrowing costs.