Economic
Banxico Signals Limited Rate Cuts Amid Sticky Core Inflation
Mexico's central bank indicates cautious rate‑cutting path in 2026 as core inflation stays above target while GDP recovers modestly.
Mexico’s Bank of Mexico has signaled that further monetary easing in 2026 will be limited, after cutting rates by 25 basis points to 7.0% amid still‑elevated core inflation above 4%. The move reflects a data‑dependent stance as the economy shows early signs of recovery from 2025 stagnation, with modest GDP growth and resilient industrial output. Banxico expects inflation to converge near 3% only by mid‑2027, leaving little room for aggressive cuts. Trade and nearshoring gains support external demand, but fiscal consolidation and US‑policy uncertainty weigh on investment.
- Status
- active
- Location
- Mexico City, Mexico
- Date added
- 2026-04-06 13:35 UTC
- Added by
- bodglobalapdrt
- Last updated
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