Mexican Central Bank Interest Rate Cut – Currency Thoughts
Mexican Central Bank Interest Rate Cut
September 26, 2025
As was expected, the Bank of Mexico late yesterday cut the overnight interbank rate by another 25 basis points to 7.5%. That brought its cumulative drop during 2025 to 250 basis points on top of 125 basis points of easing in 2024. The peak rate from March 2023 to March 2024 had been 11.0%. Mexican inflation remains somewhat above the medium target of 3% but is expected to return there within the forecast horizon. While one policymaker voted to keep the interest rate at 7.75%, the majority of policymakers seem inclined to lower the rate further in the future but are making no guarantees. “The changes in economic policy by the new US administration have added uncertainty to the forecasts. Their effects could imply inflationary pressures on both sides of the balance.”
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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