Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 116

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 116
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zone, the European Central Bank (ECB) launched its series of cuts in June and set the deposit rate at 3.00% (down from 4.00%)
amidst economic weakness and with inflation close to its target. Meanwhile, the ECB sped up the reduction of asset holdings by ceasing to reinvest maturities under its Pandemic Emergency Purchase Program (PEPP). Moreover, banks repaid all the
liquidity injected through TLTRO III refinancing operations.

In the United States, the Federal Reserve (Fed) reduced the target range of
the Fed funds rate by 100 basis points to 4.25-4.50%, in a context in which the central bank observed cooling in the labor market and was more confident that inflation is nearing the 2% target. It also signaled that inflationary risks had become
broadly balanced. Going forward, the central bank indicated that it will maintain a data-dependent stance and that the series of cuts will be staggered.

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In the United Kingdom, the Bank of England (BoE) began bringing down interest rates,
slashing the base rate by 25 basis points in August and November to 4.75%. The central bank appeared in favor of gradually reducing interest rates, with a meeting-by-meeting approach, and it reiterated its message that monetary policy will need to
remain restrictive for long enough to allow inflation risks to dissipate. On the topic of balance sheet policies, a decision was made to reduce the BoE’s bond holdings by £100 billion over the coming year, in line with the previous two
years.

In Mexico, the central bank commenced a series of cuts to the policy rate in the first quarter of the year carrying out five cuts
during the year of 25 basis points to the policy rate, which stood at 10.00%. Furthermore, Banxico left the door open to potentially greater cuts in the future. Banxico acknowledged the progress made with disinflation, though it still considered
that inflation risks were tilted to the upside, and it expressed concern over weak activity, considering that the balance of risk was weighted to the downside.

Meanwhile, other Latin American countries, such as Colombia, Chile, Peru and Brazil, remained on the path of interest rate cuts embarked on in
2023, but were more cautious in the second half of the year. In Brazil in particular, fiscal noise and worsening inflation expectations led the central bank to reassess its cuts trajectory and, in September, it started to hike