Mexico's central bank announced today that it will keep its benchmark interest rate at 6.50%, a decision that aligned with the view of every economist in a Bloomberg survey of 30 participants.
The Bank of Mexico, or Banxico, published the decision on its website. According to the announcement, the board's vote to keep the overnight rate at its present level was unanimous.
Alongside the rate decision, Banxico provided an updated inflation outlook. The central bank now projects inflation of 4.0% in the second quarter of 2026, down from its earlier estimate of 4.1%. In its statement, the monetary authority reiterated expectations that inflation will converge toward its 3.0% target during the second quarter of 2027.
Banxico also pledged to maintain the policy rate at 6.5% going forward, signalling a continued period of unchanged monetary policy under its current framework. The combination of the unchanged rate, the revised near-term inflation estimate, and the reiterated timetable for convergence to the target formed the central elements of the bank's communication.
The following encapsulates the primary points from the announcement:
- Policy rate: Left unchanged at 6.50%.
- Board decision: Unanimous vote to maintain the overnight rate.
- Consensus expectation: Decision matched the forecast of all 30 economists surveyed by Bloomberg.
- Inflation outlook: Revised to 4.0% for Q2 2026, down from 4.1% previously.
- Target path: Inflation expected to reach the 3.0% target in Q2 2027.
The bank's communication combined a steady policy stance with a modest downward tweak to its 2026 inflation projection and a reaffirmed timetable for achieving its target. The central bank's pledge to keep the rate at 6.5% going forward frames its current outlook and policy posture without introducing additional changes to the overnight rate at this time.
Note: The article reports only the information released by the central bank regarding the rate decision, the vote, and its inflation projections. It does not introduce projections or interpretations beyond those included in the official announcement.