Mexico central bank cuts target rate to 6.25pc

Argus Media · Argus Media · 2026-11-05 23:03 UTC

Mexico's central bank (Banxico) on Thursday cut its benchmark interest rate by a quarter point to 6.25pc, its lowest level in more than four years.

Mexico's central bank (Banxico) on Thursday cut its benchmark interest rate by a quarter point to 6.25pc, its lowest level in more than four years.

Banxico had held the rate unchanged over the past three decisions following a quarter-point cut to 6.5pc on 7 May — the last cut in a cycle that reduced the benchmark 450 basis points from a cyclical high of 11.25pc in March 2024.

The board's 3-2 decision to lower the rate diverged from analysts' consensus, with only six of 36 respondents in Citi Research's 4 November analyst survey predicting the cut, whereas the median forecast was for a quarter point hike in September 2027.

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