The Bank of Mexico (BdeM) cuts the interest rate to 6.75%

Contrary to market expectations, the Governing Board of the Bank of Mexico (BdeM) decided to cut the interest rate by 0.25 percentage points, bringing it down to 6.75 percent.
This decision was divisive and contrary to what most financial sector analysts had expected, as they had anticipated that the benchmark rate would remain at 7%.

“The Governing Board, with all its members present, decided by a majority vote to reduce the target for the overnight interbank interest rate by 25 basis points to 6.75 percent,” the BdeM stated in its monetary policy announcement.

This benchmark rate is the instrument that sets the cost at which businesses and households obtain financing, and it has direct effects on the price of money within the economy.

The decision comes amid an environment in which inflation rose above 4.5% in the first half of March, while external risks—such as the prolonged conflict in the Middle East—persist, maintaining pressure on energy prices.

In the announcement statement, the BdeM noted that the board members deemed it “appropriate on this occasion to continue the cycle of benchmark rate cuts.” This is consistent with the assessment of the current inflationary outlook.