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Mexico

Banxico cuts benchmark rate to 6.25% in split 3-2 vote

The surprise cut to the lowest policy rate since 2022 changes borrowing costs and the peso outlook for businesses and investors in Mexico.

Photo: The Rio Times

What happened

Banco de Mexico cut its benchmark interest rate by 25 basis points to 6.25% on November 5, 2026, effective November 6. Mexico Business News+4 The decision passed by a 3-2 vote, with Governor Victoria Rodriguez Ceja and Deputy Governors Gabriel Cuadra and Omar Mejia voting for the cut. economex.substack.com+2 Deputy Governors Galia Borja and Jonathan Heath voted to hold the rate at 6.50%. economex.substack.com+2 Most analysts had expected the rate to remain unchanged, and the decision surprised the market. economex.substack.com+2 The cut is the lowest policy rate in Mexico since February 2022. Alpha Briefing+1

Around it

The central bank raised its headline inflation forecast for the fourth quarter from 3.5% to 3.7%, and its core inflation forecast from 3.6% to 3.7%. ua.news The cut narrows the rate differential with the United States to 225 basis points, a historic low, after the Federal Reserve held rates in October. el-fondo.com The central bank says the peso has weakened since its previous decision on September 24, and the Board expects the 6.25% rate to be held for an extended period. bbvaresearch.com+1

What comes next

The central bank's next rate decision is due on December 17, 2026. The Rio Times

Sources

  1. Mexico Business NewsBanxico Cuts Rate to 6.25%, Redefining Corporate Credit
  2. bbvaresearch.comMexico | Banxico delivers surprise cut, signals prolonged pause
  3. The Rio TimesMexico Cuts Rate as Debt Heads to 55% of GDP
  4. economex.substack.comBanxico Puts Rate Cuts Ahead of Fighting Inflation: Is It Serving Mexico’s Treasury?
  5. Alpha BriefingEvery Central Bank Is Hiking. Mexico Just Cut.
  6. el-fondo.comBanxico cuts interest rate to 6.25%
  7. ua.newsMexico’s central bank cuts rate to 6.25%

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