Banco de México cut its interest rate by 25 basis points to 6.50 percent, ending a cycle of reductions that began in March 2024. The move followed April inflation slowing to 4.45 percent annually. Two board members voted against the decision.
Banco de México’s Governing Board stated in its release that the new rate level is appropriate to address inflationary challenges. Annual inflation stood at 4.45 percent in April, with a monthly change of 0.20 percent, according to Inegi data.
Governor Victoria Rodríguez Ceja had signaled this would be the year’s final cut. The full cycle lowered the rate by 450 basis points since March 2024.
Jonathan Heath and Galia Borja voted to keep the rate at 6.75 percent. The Mexican peso closed down 0.17 percent at 17.2693 pesos per dollar.
The central bank projects inflation will reach its 3 percent target in the second quarter of 2027. Uncertainty from the Middle East conflict moderated but remains elevated.
