The Bank of Mexico said on Thursday that it might continue cutting the benchmark interest rate at future monetary policy meetings and could "consider adjusting it in similar magnitudes" to the latest 50 basis point reduction.

The central bank cut its benchmark rate to 9.5% from 10% on Feb. 6 as board members noted the economy’s contraction in the fourth quarter and the wild card of U.S. policy.

The Bank of Mexico has halved its growth forecast for the Mexican economy in 2023, with potential for a recession. The growth estimate is now 0.6%, with inflation taking longer to reach its 3.0% target.

The Bank of Mexico on Wednesday halved its growth forecast for the Mexican economy this year and even sees a possibility it will slide into a recession, contracting by as much as 0.2%. It said Latin America's second-largest economy is now forecast to grow just 0.