Banxico Holds Rate at 6.5%, Shifts Guidance

Mexico’s central bank, Banxico, unanimously kept its benchmark interest rate at 6.50% as it assessed whether inflation’s recent slowdown will continue. The more significant change was a softer, more flexible policy outlook: officials removed language suggesting rates would remain fixed and said future decisions will depend on incoming economic data, rather than mechanically following expected Federal Reserve moves. Inflation forecasts were broadly steady, though the outlook for core inflation edged higher and risks remained tilted upward. Rabobank expects the rate to remain at 6.50% for now, while judging that risks may favor a future increase.