The Bank of Mexico kept its benchmark interest rate unchanged at 6.50 percent, maintaining borrowing costs for the third consecutive monetary policy meeting. The decision by the central bank, also known as Banxico, was unanimous among the Governing Board members.
Policy outlook and inflation
Looking ahead, the Governing Board will make its decisions considering the continuation of the disinflationary process and the expected behavior of its determinants, including exchange rate pass-through to consumer prices, slack conditions, and inflation expectations. Banxico leaves borrowing costs untouched as it monitors those domestic inflation dynamics.
Market analysts ruled out an interest rate move for 2026. The pause keeps Mexican monetary policy steady.
External policy divergence
Across the northern border, the US Federal Reserve recently raised its policy rate by 25 basis points, shifting the rate differential between the two countries. The Mexican central bank evaluated borrowing conditions alongside developments at state-owned oil firm Pemex and broader macroeconomic factors.
Banxico chose to keep rates firm. The rate pause reflects the governing board’s focus on domestic monetary transmission and currency pass-through.
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Source: Bank of Mexico
