Policy rate held at 6.50 percent in unanimous vote
Banco de México unanimously decided to maintain the target for the overnight interbank interest rate at 6.50 percent at its September meeting. The Governing Board cited ongoing disinflation in core prices and the absence of domestic demand-side pressures.
Unanimous hold amid core disinflation
Banco de México held its overnight interbank funding rate at 6.50 percent in a unanimous vote with all Governing Board members present on September 24, 2026.
The decision reflects a moderation in domestic economic activity during the third quarter and continued economic slack.
Between the first fortnight of July and the first fortnight of September 2026, headline inflation increased from 3.10 percent to 3.42 percent because of non-core price pressures.
In contrast, core inflation maintained its downward trajectory, declining from 3.95 percent to 3.79 percent over the same period.
The central bank continues to forecast headline inflation convergence to the 3.0 percent target in the fourth quarter of 2027.
Decoupling from the Federal Reserve
The Governing Board explicitly disconnected its policy trajectory from the Federal Reserve, which raised its federal funds rate target by 25 basis points in September.
Banxico stated that different cyclical positions mean domestic monetary policy will not react mechanically to US decisions.
Projections show headline inflation forecasts revised lower for the third quarter of 2026, while core inflation was adjusted slightly higher for late 2026.
The balance of risks for inflation remains biased to the upside.
Independence over imitation
Banxico's refusal to match Fed rate hikes confirms monetary independence supported by domestic economic slack.
Yet sticky core inflation near 3.8 percent leaves little margin for policy error.
Maintaining 6.50 percent is necessary, but talk of cuts remains premature.