Mexico - May 2025

MEXICO | Banxico continues to lower interest rate. On 15 May Mexico’s central bank (Banxico) lowered its benchmark interest rate by 50 basis points for the third time this year, bringing the rate to 8.5%. This is the seventh consecutive rate cut, following cuts of 25 basis points in December, November, September, and August last year. In a statement announcing the decision, Banxico said it could consider cutting the rate by a similar magnitude at future meetings. However, the bank noted that core inflation rose in April and forecasts for general inflation at the close of 2025 had been revised up in the short-term. Despite this, it still expects inflation to reach the 3% target by Q3 2026.

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