The Central Bank of Mexico unanimously kept its overnight interbank interest rate target at 6.50%, citing continued disinflation, domestic economic slack and the existing degree of monetary restriction. It noted that Mexico and the United States are at different stages of the economic cycle, meaning Mexican monetary policy would not need to respond mechanically to anticipated changes in the U.S. federal funds rate. Headline inflation rose from 3.10% in the first half of July to 3.42% in the first half of September because of higher noncore inflation, while core inflation declined from 3.95% to 3.79%. The central bank lowered its headline inflation forecast for the third quarter of 2026 but slightly raised its core forecasts for the third and fourth quarters. It continues to expect headline inflation to converge to the 3% target in the fourth quarter of 2027, although the risk balance remains tilted to the upside because of persistent core inflation, geopolitical and trade disruptions, cost pressures and potential peso depreciation.
2026-09-24Central Bank of Mexico
Central Bank of Mexico unanimously holds overnight interbank rate target at 6.50%
The Central Bank of Mexico unanimously held its overnight interbank interest rate target at 6.50%, citing disinflation, economic slack and restrictive monetary conditions. Headline inflation rose to 3.42% in the first half of September, while core inflation eased to 3.79%. Inflation is still forecast to reach the 3% target in the fourth quarter of 2027, with risks tilted to the upside.