A decline in inflation prompts Mexico’s central bank to cut its key interest rate
Official data showing a decline in inflation in April was published on Thursday morning and just hours later the Bank of Mexico (Banxico) board voted in favor of cutting the central bank’s key interest rate by 25 basis points. The national statistics agency INEGI reported that Mexico’s annual headline inflation rate was 4.45% in April, down from 4.59% across March. The decline in April came after the headline rate increased in each of the first three months of 2026. Among those applauding Banxico’s latest interest rate cut was President Claudia Sheinbaum, who said the move “activates investment.” (Mario Jasso/Cuartoscuro) INEGI also reported that month-over-month inflation was 0.20% in April, while the annual core rate — which excludes volatile food and energy prices — was 4.26%, down from 4.45% across March. Later on Thursday, a divided Bank of Mexico governing board voted in favor (3-2) of lowering the central bank’s benchmark interest rate fro...