Banxico unanimously holds benchmark rate at 6.50%
On Thursday, the Bank of Mexico (Banxico) held interest rates unchanged at 6.50% for the fourth time, as expected, in a unanimous decision.
On Thursday, the Bank of Mexico (Banxico) maintained its benchmark interest rate at 6.50% for the third consecutive time, as anticipated, in a unanimous vote. The rate decision was based on revised inflation forecasts, with headline inflation for Q3 2026 expected to be lower due to expectations of reduced non-core inflation. Meanwhile, core inflation was modestly revised upward, with Banxico projecting inflation to reach its 3% target by Q4 2027.
The central bank acknowledged that prolonged geopolitical conflicts introduce uncertainty to its predictions. Banxico emphasized that monetary policy would not automatically adjust to anticipated changes in the Federal funds rate, as Mexico's macroeconomic conditions differ from those in the United States. The institution's eight monthly meetings allow it to closely monitor the Federal Reserve's decisions and respond accordingly.
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