Banxico cuts its rate to 6.25% on a 3-2 vote
Two of the five board members wanted to hold at 6.50%. Banxico says it plans to keep the new level for a prolonged time and raised its inflation forecast.
The Bank of Mexico, known as Banxico, lowered its benchmark rate by 25 basis points, from 6.50% to 6.25%PDF, effective Friday, Nov. 6. The overnight interbank rate is the reference for the cost of credit in Mexico.
The board was not unanimous. Victoria Rodríguez Ceja, José Gabriel Cuadra García and Omar Mejía Castelazo voted to cut; Galia Borja Gómez and Jonathan Heath voted to hold at 6.50%.
At the previous meeting, on Sept. 24, all five had voted to hold.
The board called the move a "one-off adjustment" and said keeping the new level "for a prolonged time" will help inflation converge to its target. It said "no demand pressures are perceived in the economy" and that the pass-through of peso moves to prices would be limited.
Prices, though, are rising. Annual headline inflation reached 3.62% in the first half of October 2026, up from 3.42% in the first half of September, driven by volatile non-core prices. Core inflation edged down from 3.79% to 3.78%.
Banxico raised its forecasts for the fourth quarter of 2026 and still expects headline inflation to reach its 3% target in the same quarter of 2027:
| Measure | Sept. 24 announcement | Nov. 5 announcement |
|---|---|---|
| Headline inflation | 3.5 | 3.7 |
| Core inflation | 3.6 | 3.7 |
The benchmark rate anchors what Mexican government bills, known as Cetes, and many loans pay, so a cut makes new borrowing cheaper, in principle. The board's pledge to hold the rate suggests Banxico does not foresee more immediate cuts.
The minutes of this meeting come out Nov. 19, and the bank's last decision of the year is Dec. 17.
