US EditionCentral bank cuts interest rate to 7% citing weak economic activity
The Bank of Mexico cut its benchmark rate to 7% in a 4-1 vote, marking the eighth rate reduction this year amid weak economic activity and a 3.8% inflation rate.
- On Thursday, the Banxico governing board voted to cut the benchmark interest rate by 25 basis points to 7.00%, following 12 consecutive reductions from 11%.
- Considering the economy's weakness, the central bank noted the cut reflected exchange-rate behavior, weak economic activity and changes in trade policies and geopolitical disruptions.
- The decision came with a clear board split as four-of-five vote split supported the 25-basis-point cut, including Governor Victoria Rodríguez, while Deputy Governor Jonathan Heath voted to keep 7.25%, despite inflation rising to 3.80% and 4.43%.
- Officials signaled ongoing assessment of policy timing while forecasting Banxico will evaluate timing for additional reference rate adjustments and project headline inflation easing to 3% by Q3 2026.
- In broader context, the central bank flagged the eighth successive easing in 2025 and noted risks with the Mexican peso trading at 18.01 per US dollar shortly after 2 p.m. Thursday.
29 Articles
29 Articles
Banxico Cuts Again, But Signals It May Slow the Easing Cycle
Key Points Mexico’s central bank cut its benchmark rate to 7.00% and said future moves will be decided meeting by meeting. Inflation is no longer falling cleanly, and a dissenting vote shows the board is split on how much easing Mexico can safely absorb. Uncertainty around U.S. trade and economic policy is now a key […]
The Bank of Mexico (BdeM) cut the reference interest rate by a quarter of a percentage point, to 7 percent, despite accepting that the reduction in inflation has been “more gradual than expected” and even adjusting its forecast on price developments upwards.
The Bank of Mexico has announced on Thursday the cut in 25 basis points of the interest rate and has located it at 7%. The entity thus continues on the less restrictive path that began in March 2024. “The Government Board judged it appropriate to continue with the cycle of decreases of the reference rate. This in congruence with the assessment of the current inflationary panorama. In particular, it considered the behavior of the exchange rate, t…
In its last monetary policy decision of the year, the Bank of Mexico (Banxico) decided to apply another cut of 25 basis points to its reference interest rate, to take it to 7 percent, in the midst of weak economic activity and stronger inflation than expected. The Government Board of Banxico stated that it considered it appropriate to continue with the cycle of decreases in the rate in congruence with the assessment of the current inflationary l…
Everything indicates that this Thursday Banco de México will do what the market already takes for granted: a cut of 25 basis points that would bring the reference rate to 7.0%.If confirmed, it would be the last drop of the year and, most likely, the last move before a prolonged pause.But on this occasion, as usually happens at the tipping points of monetary policy, the decision passes to the background.What is really relevant will be the message…
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