The Bank of Mexico’s Governing Board unanimously held the overnight interbank interest rate target at 6.50%, citing continued disinflation, expected economic slack and an absence of demand pressures, while maintaining an upward bias in the inflation risk balance. Over the past year, the central bank cut the rate in 25-basis-point steps from 7.50% in September 2025 to 6.50% in May 2026 and has held it since. Headline inflation rose to 3.42% in the first half of September, while core inflation declined to 3.79%, and headline inflation is still projected to converge to the 3% target in the fourth quarter of 2027. Economic growth was estimated to have moderated in the third quarter, with downside risks persisting, while Mexican government yields rose across most maturities and the peso showed some volatility. Globally, growth slowed slightly, advanced-economy inflation was pressured by higher energy prices, commodity prices increased and financial markets remained volatile amid uncertainty over the Middle East conflict. The Governing Board will assess disinflation, exchange-rate pass-through, slack and inflation expectations, and said domestic monetary policy need not respond mechanically to anticipated US rate adjustments.
2026-09-24Bank of Mexico
Bank of Mexico Holds Policy Rate at 6.50%
The Bank of Mexico unanimously held the overnight interbank interest rate target at 6.50%, citing continued disinflation, expected economic slack and limited demand pressures, while maintaining an upward bias in inflation risks. Headline inflation is projected to converge to the 3% target in the fourth quarter of 2027.