The Bank of Mexico lowered its benchmark interest rate by 25 basis points to 11.00% during its March 2024 meeting, aligning with expectations and marking the first rate cut after seven consecutive pauses. The governing council noted expectations for increased economic activity in Q1 2024, supported by a robust labor market. Despite a temporary uptick in inflation at the end of 2023 and early 2024, annual inflation decreased to 4.40% in February 2024, mainly due to non-core component reversals, while core inflation continued its downward trend. Inflation forecasts for 2024 and 2025 were slightly revised downward, although long-term expectations remain above the target. Despite these challenges, the Board maintains a restrictive monetary stance to support inflation convergence to the 3% target. Future decisions will hinge on available information, inflation trends, and the impact of current monetary policy on inflation dynamics. source: Banco de México
The benchmark interest rate in Mexico was last recorded at 11 percent. Interest Rate in Mexico averaged 6.11 percent from 2005 until 2024, reaching an all time high of 11.25 percent in March of 2023 and a record low of 3.00 percent in June of 2014. This page provides - Mexico Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Mexico Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2024.
The benchmark interest rate in Mexico was last recorded at 11 percent. Interest Rate in Mexico is expected to be 10.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Mexico Interest Rate is projected to trend around 8.00 percent in 2025, according to our econometric models.
Mexico Interest Rate
In Mexico, interest rate decisions are taken by the Bank of Mexico (Banco de México). Starting January of 2008, Banco de México has adopted as an operating target the overnight interbank rate (tasa de fondeo bancario) instead of the level of commercial banks’ current account balances at the central bank (corto).
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 11.00 | 11.25 | 11.25 | 3.00 | 2005 - 2024 | percent | Daily |
News Stream
Banxico Lowers Interest Rate to 11%, as Expected
The Bank of Mexico lowered its benchmark interest rate by 25 basis points to 11.00% during its March 2024 meeting, aligning with expectations and marking the first rate cut after seven consecutive pauses. The governing council noted expectations for increased economic activity in Q1 2024, supported by a robust labor market. Despite a temporary uptick in inflation at the end of 2023 and early 2024, annual inflation decreased to 4.40% in February 2024, mainly due to non-core component reversals, while core inflation continued its downward trend. Inflation forecasts for 2024 and 2025 were slightly revised downward, although long-term expectations remain above the target. Despite these challenges, the Board maintains a restrictive monetary stance to support inflation convergence to the 3% target. Future decisions will hinge on available information, inflation trends, and the impact of current monetary policy on inflation dynamics.
2024-03-21
Banxico Unanimously Maintains Rate at 11.25% for 7th Consecutive Meeting
The Bank of Mexico unanimously decided to maintain its record-high benchmark policy rate at 11.25% during its January 2024 meeting, in line with expectations. This decision marked the seventh consecutive session of a pause, following 15 interest rate hikes since June 2021. January saw annual headline inflation accelerate to 4.88%, driven by a non-core component increase, while core inflation slowed to 4.76%. Inflation expectations for 2024 increased, remaining relatively high in the long term. Despite geopolitical tensions and inflationary pressures, the unanimous decision reflects the commitment to maintain a restrictive monetary stance. The Board pledges to monitor inflationary pressures and other factors closely, considering adjustments based on available information in upcoming meetings, to ensure a steady convergence to the 3% target and uphold a low and stable inflation environment.
2024-02-08
Banxico Unanimously Holds Rate Steady at 11.25%
The Bank of Mexico unanimously decided to maintain its record-high benchmark policy rate at 11.25% during its December 2023 meeting, in line with expectations. This decision marked the sixth consecutive session of a pause, following 15 interest rate hikes since June 2021. November saw annual headline inflation rise to 4.32%, driven by a non-core component increase, while core inflation remained elevated at 5.30%. 2023 expectations indicate a decline in overall inflation but an uptick in core inflation. Long-term expectations remain stable, above the target level, with convergence projected for Q2 2025. The central bank reaffirmed its commitment to a low inflation environment, actively monitoring inflationary pressures, and maintaining a monetary policy stance aligned with achieving the 3% inflation target.
2023-12-14
