Banxico to Hold Rate Going Forward, Flags Economic Weakness (opens original article in a new tab)

Mexico's central bank, Banxico, held its benchmark interest rate steady at 6.50% and signaled it will keep the rate unchanged for longer as it monitors inflation and economic growth. The bank acknowledged continued economic weakness and risks, while noting core inflation remains a challenge. Mexico's GDP contracted in the first quarter, and growth forecasts for 2026 were lowered.

• Banxico kept its benchmark interest rate at 6.50% and plans to maintain it for longer
• The central bank highlighted ongoing economic weakness and risks to activity without specifying a timeline
• Banxico noted core inflation remains challenging despite easing headline inflation
• Mexico's GDP shrank 0.6% in Q1 and 2026 growth forecast was cut to 1.1% from 1.6%