Mexico's central bank (Banxico) cut its benchmark rate by 25 basis points to 6.75% on March 26, 2026—following its prior reduction to 7% in December 2025—approved by a 3-2 vote amid persistent inflationary pressures from fruit/vegetable surges and geopolitical tensions. The Board signaled potential for another cut based on evolving conditions, with analysts split on timing.
Banco de México (Banxico) announced on Thursday, March 26, 2026, a 25 basis point cut in its reference rate from 7.0%—set after the December 2025 decision—to 6.75%, passed 3-2. Yes votes: Governor Victoria Rodríguez and Deputy Governors Gabriel Cuadra and Omar Mejía. No votes: Galia Borja and Jonathan Heath, favoring a hold at 7.0%.
The decision came amid Middle East geopolitical tensions and upward revisions to 2026 inflation forecasts. INEGI data two days earlier showed annual general inflation at 4.6% in early March, driven by 23.9% fruit/vegetable price surges. Banxico raised forecasts but anticipates convergence to its 3% target by Q2 2027.
The statement read: “Going forward, as the evolution of macroeconomic and financial conditions warrants, the Board of Governors will assess the appropriateness and timing of an additional cut to the reference rate.”
Analyst Alonso Cervera of Banco Santander México noted uncertainty on further cuts. A March 20 Citi survey showed a slim majority expecting no change until May. Minutes release: April 9.
