Banxico leaves interest rates unchanged at 6.50% as expected

The Bank of Mexico held its main reference rate unchanged at 6.50% as expected, unanimously and on its economic projections, cited that the balance of risks of inflation is tilted to the upside.

Board signals restrictive stance as core inflation remains key focus

In the statement, the central bank mentioned that it is “appropriate to maintain the reference rate at its current level,” with the board focused on clear evidence that core inflation is easing and that external or domestic shocks are not feeding into inflation.

The statement added that the board “judges that the monetary policy stance is well-suited to face the challenges posed by the macroeconomic environment, including those associated with the international context. The central bank reaffirms its commitment to its primary mandate and the need to continue its efforts to consolidate an environment of low and stable inflation.”

Regarding economic projections, Banxico’s board sees the Mexican economy expanding in the second quarter of 2026, after contracting in Q1, while noting that “significant downside risks to activity remain.” About inflation, the central bank noted that “Headline inflation is still expected to converge to the target in the second quarter of 2027.”

Banxico’s economic projections