Mexico's central bank cut the leading interest rate by 25 basic points Friday to leave it at 7.5 per cent.
This was the second interest rate cut in Mexico in little over a month, dpa reported.
The Bank of Mexico said the global financial crisis continued to get tougher, and said that, although inflation has shown a downward trend since January, "the strong financial turbulence that was observed recently represents a risk."
"There is great uncertainty as to the depth and duration of the crisis," the central bank said. "The sharp fall in aggregate demand and employment in the United States is having a negative impact on economic activity in Mexico."
The price level rose by 6.53 per cent in Mexico in 2008, its highest rise in eight years.