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November 6, 2025
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Banxico cuts its interest rate and leaves it at 7.25%

Banxico cuts its interest rate and leaves it at 7.25%

Victoria Rodríguez Ceja, Galia Borja Gómez, José Gabriel Cuadra García and Omar Mejía Castelazo voted in favor of the decision. Voted in favor of maintaining the target for the Overnight Interbank Interest Rate at a level of 7.50% Jonathan Heath.

This is the entity’s 12th cut after it began its flexibility cycle at the beginning of 2024.

The new level was in line with what analysts expected and after the national economy is currently facing a slowdown in inflation and a weak performance of the productive sector.

“In the third quarter of 2025, economic activity presented a contraction in relation to the second quarter of the year. The environment of uncertainty and trade tensions continues to imply significant downward risks,” Banxico said in its statement.

The Governing Board said that it will consider cutting the reference rate in the future and that it will take into account the effects of the determinants of inflation.

“The actions implemented will be such that the reference rate is consistent, at all times, with the trajectory required to promote the orderly and sustained convergence of general inflation to the 3% target within the expected period,” he said.



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