Mexico central bank cuts interest rate to 6.25%
Banxico said disinflation is continuing and signaled rates could stay at the new level for an extended period.
- On Thursday, Banxico, the Bank of Mexico, cut its key interest rate by 25 basis points to 6.25%. This surprise move caught markets off guard, as the economic calendar had pointed to no change.
- A Citi survey of Mexican analysts taken on 20 October predicted caution from the bank. However, Banxico cut its benchmark interest rate when the economic calendar had pointed to no change, defying those market expectations.
- Mexico's main stock index, the S&P/BMV IPC, rose 0.30% to 71,033, reaching its highest close in at least six months. Simultaneously, the peso weakened against the dollar, which rose 0.73% to 18.73 pesos.
- Supermarket chain Chedraui gained 7.4% on US$38m turnover, while petrochemicals producer Alpek dropped 9.0% on US$115m of turnover. This occurred as the S&P 500 fell 4.36% during broader market uncertainty, demonstrating domestic resilience.
- Polymarket, a prediction market, indicates a 92.0% probability that the central bank will hold rates in December. Meanwhile, traders monitor the peso as it remains near its 12-month peak against the dollar.
53 Articles
53 Articles
Bucking expectations, Banxico lowers the interest rate, despite some inflation concerns
The central bank's majority opted for a balancing act, cutting the interest rate from 6.5% to 6.25% as an ecoomy boost, while assuming that recent brakes on inflation will hold, despite raising their 4Q headline inflation forecast from 3.5% to 3.7%. Read the full articleThe post Bucking expectations, Banxico lowers the interest rate, despite some inflation concerns appeared first on Mexico News Daily
Claudia Sheinbaum, president of Mexico, spoke about the reduction of the interest rate to the Bank of Mexico (Banxico), ensuring that the impact that could be expected should be expected. In addition to remembering that Banxico is autonomous, she stressed that her decisions are not arbitrary, but go hand in hand with expert analysis. Claudia Sheinbaum reacts to the cut in Banxico's interest rate In the morning of November 6, 2026, Claudia Sheinb…
Mexico’s central bank surprises markets with rate cut as peso weakens
Banxico has unexpectedly reopened its easing cycle, cutting rates to 6.25% despite persistent inflation risks. The move puts the peso under pressure and raises fresh questions about the central bank's credibility.
The Bank of Mexico’s decision to cut the reference rate to 6.25 percent was “unwise,” as the inflationary landscape has deteriorated, Banamex’s Economic Studies area noted.
(Mexico City = Yonhap News) Correspondent Song Gwang-ho = The central bank of Mexico cut its base interest rate by 0.25%, defying market expectations.
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