Banco de México interest rate cut, Digi Mart USA News (Mexico): The Governing Board of Banco de México decided to reduce the target for the overnight Interbank Interest Rate by 25 basis points, placing it at 6.25 percent. The measure takes effect November 6, 2026, and was adopted by majority vote with all members present, after the board assessed that the disinflation process has continued in the country.
During the third quarter of the year, global economic activity expanded at a slightly slower pace, while headline inflation rose in several advanced economies due to higher energy prices. Domestically, the Mexican economy continued to expand, although slack conditions and downside risks persist.
Annual headline inflation rose from 3.42 percent to 3.62 percent between September and October, driven by the non-core component.
The central bank said its headline inflation forecasts were adjusted upward for the fourth quarter because non-core levels were higher than anticipated. It maintained, however, the expectation that inflation will converge to the 3 percent target in the fourth quarter of 2024 or within the projected period.
Board members also judged that keeping the rate at its current level for an extended period will help consolidate an environment of price stability and allow Mexico to face external macroeconomic challenges arising from geopolitical and trade uncertainty.
