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Global · Central banks · Source: banxico.org.mx · Featured 6 Nov 2026
Mexico’s central bank cuts overnight rate to 6.25% in a majority vote
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Editor: Hedal Kolanyi / AI-assisted
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Summary: Banco de México lowered its overnight interbank interest rate target by 25 basis points to 6.25%, effective 6 November 2026. Three board members voted for the cut; two preferred to hold at 6.50%.
What happened
In its monetary policy statement dated 5 November 2026, Banco de México’s Governing Board said it decided by majority to lower the target for the overnight interbank interest rate by 25 basis points to 6.25%, effective 6 November. Voting for the cut were Victoria Rodríguez, Gabriel Cuadra and Omar Mejía. Galia Borja and Jonathan Heath voted to keep the rate at 6.50%.
The bank said headline inflation rose from 3.42% to 3.62% between the first fortnight of September and the first fortnight of October because non-core inflation increased, while core inflation edged down from 3.79% to 3.78%. It revised headline inflation forecasts up for the fourth quarter of 2026 mainly on higher expected non-core inflation, and still expects headline inflation to converge to the target in the fourth quarter of 2027.
The Board judged that the disinflation process continues, that economic slack is expected to persist, and that under prevailing slack the pass-through of exchange-rate moves to consumer prices would be limited. It described the move as a “one-time adjustment” and said that keeping the reference rate at the new level for an extended period will support inflation’s return to target.
Background
The statement notes that world economic activity is expected to have grown a little more slowly in the third quarter than in the previous quarter, that several advanced economies still face rising headline inflation from energy prices, and that the US Federal Reserve left its federal funds target range unchanged in October. In Mexico, medium- and long-term government yields fell while short-term rates rose, and the peso depreciated. The Mexican economy continued expanding in the third quarter, but the bank sees downward risks to activity. The balance of risks for inflation remains biased to the upside, with uncertainty from US economic policy changes and possible extensions of geopolitical conflicts.
Why it matters for markets and crypto
Mexico is a large emerging-market economy closely tied to US demand and dollar funding conditions. A policy-rate cut while peers in some advanced economies are holding or tightening can affect currency and bond markets and the broader pricing of risk. This article does not discuss any specific asset and makes no forecast. The data relates to the wider economy.
What to watch next
- Incoming fortnightly Mexican CPI prints and the bank’s next scheduled monetary policy announcement.
- The path of the peso and US rates, which the Board lists among determinants of future decisions.
- Banco de México’s published inflation forecast path through 2027 Q4 for convergence to target.
Sources
- Banco de México, Monetary policy statement, 5 November 2026
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