MEXICO CITY, May 29 (Reuters) - All of the Bank of Mexico's five governing board members agreed in the monetary authority's most recent rate decision that the period had been marked by high uncertainty due to trade policy announcements worldwide, minutes published on Thursday showed.

"Some activity indicators surprised to the downside partly due to the effects of trade uncertainty at the global level," said the Mexican central bank.

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Most board members also noted that changes in trade policy have added significant uncertainty to the global economic outlook.

Adding to global concerns, a U.S. trade court on Wednesday blocked most of U.S. President Donald Trump's tariffs, arguing he had overstepped his authority in imposing across-the-board duties on imports from U.S. trading partners.

Banxico, as the central bank is known, slashed its growth forecast for Mexico's economy this year to 0.1%, from its previous estimate of 0.6%, citing sluggish domestic activity and uncertainty related to U.S. trade policy, according to its quarterly report published on Wednesday.

Trump's tariff announcements since he took office in January have shaken markets and added to global uncertainty. This month, the U.S. and China agreed to a temporary truce to scale back tariffs, while Trump also postponed 50% duties on the EU until July 9.

Inflation in Mexico rose more than expected in the first half of May, reaching 4.22%, above the central bank's target range of 2% to 4%.

Still, most board members expect headline inflation to return to the target range by the third quarter of 2026.

The majority also said risks to economic activity remain tilted to the downside, while one member warned that this could push inflation higher than anticipated, which could lead to an upward revision to the forecast.

https://www.reuters.com/world/americas/bank-mexicos-rate-decision-marked-by-trade-policy-pressures-minutes-show-2025-05-29/