The Bank of Mexico lowered its benchmark interest rate by half of a percentage point in a split vote and left the door open for further cuts.

The five-member board of governors voted 4-1 in favor of cutting the overnight interest-rate target to 8% from 8.5%. It is the fourth straight half-point reduction, and brought the rate to its lowest level in almost three years. Deputy Gov. Jonathan Heath voted to leave the rate at 8.5%.

“Looking ahead, the board will assess further adjustments to the reference rate,” the central bank said. Unlike in the previous meetings, the bank didn’t specify that future half-point cuts were possible.

“The accompanying communications were slightly less dovish and point to a slower pace of easing going forward,” Liam Peach, senior emerging markets economist at Capital Economics said in a note.

The central bank stepped up the pace of monetary easing this year despite a pickup in inflation, amid concerns about the slowdown in the economy. The bank noted moderate economic activity growth in April, but said uncertainty remains with trade tensions posing “significant downward risks.”

The Bank of Mexico said it still expects inflation, which rose to 4.51% in mid-June from 3.93% in April, to return to its 3% target in the third quarter of 2026.

“Headline inflation has surprised to the upside, but most of the increase reflects temporary factors affecting the non-core component,” economists at BBVA said in a report. While early second-quarter data show signs of resilience in the economy, the labor market has weakened “and persistent headwinds weigh on the growth outlook,” they added.