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Bank of Mexico lowers benchmark interest rate to 8.50% from 9.00%
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Board says decision was unanimous
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Board estimates that looking forward it could continue calibrating the monetary policy stance and consider adjusting it in similar magnitudes
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Board anticipates that the inflationary environment will allow to continue the rate cutting cycle, albeit maintaining a restrictive stance
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Headline inflation is projected to converge to target in Q3 of 2026
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Balance of risks for trajectory of inflation within the forecast horizon remains biased to the upside
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Balance of risks for trajectory of inflation has improved
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Changes in economic policy by the new US administration have added uncertainty to the forecasts
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Board will take into account the effects of the country’s weak economic activity and the incidence of both the restrictive monetary policy stance that has been maintained
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Forecasts Q4 2026 average annual headline inflation at 3.3% versus previous forecast of 3.0%
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Forecasts Q4 2026 average annual core inflation at 3.0% versus previous forecast of 3.0%
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Forecasts Q4 2025 average annual headline inflation at 3.3% versus previous forecast of 3.3%
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Forecasts Q4 2025 average annual core inflation at 3.4% versus previous forecast of 3.3%
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The board took into account the behavior of the exchange rate, the weakness of the economic activity and the possible impact of changes in trade policies worldwide.
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The environment of uncertainty and trade tensions poses significant downward risks
This article was written by Greg Michalowski at www.forexlive.com.