The Bank of Mexico, known as Banxico, held its benchmark interest rate at 6.5% at its latest meeting, choosing to keep policy steady rather than cut further. The central bank cited core inflation, which strips out volatile food and energy prices, as remaining sticky enough to warrant caution.
The decision matters because it signals Banxico may be slowing the pace of its easing cycle after a string of rate cuts. The bank also tweaked its forward guidance language, a change that traders will read closely for hints about the timing of the next move.
What is unresolved is how long the hold will last. The statement did not give a specific date for the next possible cut, leaving markets to parse incoming inflation data meeting by meeting.