Another Mexican Central Bank Interest Rate Cut – Currency Thoughts

Another Mexican Central Bank Interest Rate Cut

November 7, 2025

In Mexico where inflation of 3.8% is within the 2-4% target window and real GDP has lately contracted, the Bank of Mexico late yesterday implemented another basis point cut. The 25-basis point move was the twelfth since March 2024, joining 7 other cuts of that size plus four cuts of 50 basis points each. At 7.25%, the new level is its lowest since early June 2022 and four full percentage points below the cyclical high first reached in March 2023. A released statement reveals one dissenting vote for no rate change but signals more likely easing in the future:

 The Board will evaluate reducing the reference rate. It will take into account the effects of all determinants of inflation. Actions will be implemented in such a way that the reference rate remains consistent at all times with the trajectory needed to enable an orderly and sustained convergence of headline inflation to the 3% target during the forecast period.

Copyright 2025, Larry Greenberg. All rights reserved.

Tags: Bank of Mexico

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on Friday, November 7th, 2025 at 8:23 am and is filed under Central Bank Watch.
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