Mexico’s central bank holds interest rate at 6.50% while inflation continues to decline
The Bank of Mexico (Banxico) board voted on Thursday to maintain the central bank’s benchmark interest rate at 6.50%, even as inflation continues to decline. At Banxico’s fourth monetary policy meeting of 2026, all five members of the central bank’s board voted in favor of keeping the overnight interbank interest rate at 6.50%. Meat prices were a big decliner during the first half of June, at 6.15% compared to the same period last year. (Jose Ignacio-Pompe / Unsplash) Banxico cut its key interest rate to that level in early May , and indicated at the time that there would be no further reductions in the near future. Therefore, Thursday’s decision was no surprise. The Bank of Mexico’s interest rate decision came a day after the national statistics agency INEGI reported that Mexico’s annual headline inflation rate was 3.55% in the first half of June, down from 3.94% across May . Banxico targets 3% inflation, with tolerance for a 2-4% range. In a s...