At its meeting on 2 September, the Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by...
Banxico Target Rate in Mexico
Mexico's central bank policy rates over the last decade varied in response to economic conditions. Initially, rates were increased to control inflation, but were cut to stimulate growth during economic slowdowns, particularly during the COVID-19 pandemic. Post-pandemic, the focus shifted to controlling rising inflation, leading to increased rates before another easing cycle began in 2024 as inflation pulled back. However, interest rates remain above pre-pandemic levels.
The banxico target rate ended 2024 at 10.00%, compared to the end-2023 value of 11.25% and the figure a decade earlier of 3.00%. It averaged 6.93% over the last decade. For more interest rate information, visit our dedicated page.
Mexico Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Mexico from 2014 to 2025.
Source: Macrobond.
Mexico Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Banxico Target Rate (%, eop) | 5.50 | 10.50 | 11.25 | 10.00 | 7.00 |
| TIIE 28 Days Rate (%, eop) | 5.72 | 10.76 | 11.50 | 10.24 | 7.35 |
| 10-Year Bond Yield (%, eop) | 7.57 | 8.94 | 9.39 | 10.43 | 9.20 |
Central Bank holds rates in August
Latest bank decision: At its meeting on 6 August, the Central Bank decided to hold the target for the overnight interbank interest rate at 6.50%, after total cuts of 475 basis points since early 2024.
Bank in wait-and-see mode: The decision to hold was driven by a desire to assess the impact of past rate cuts, against a backdrop of moderate economic activity and headline and core inflation which are currently within the Bank’s 2.0–4.0% target range.
Rates to stay on hold: After substantial monetary easing over the last couple of years, our Consensus is for the Central Bank to not make any further interest rate cuts in 2026. This aligns with the Bank’s own forward guidance.
Panelist insight: On the outlook, Goldman Sachs’ Alberto Ramos said: “The balance of risks for inflation remains skewed to the upside and for growth to the downside. The MPC expects the economy to operate with slack (idle capacity) over the forecasting horizon. Given the central bank’s majority focus on weak growth, we are of the view that despite the on-hold guidance the MPC could entertain additional rate cuts after the summer if the economy remains weak, MXN well-anchored, and the FOMC remains on hold. Conversely, were the FOMC to hike, the MPC would likely face unfavorable policy trade-offs given the tight Mexico-US interest rate differential, but the bar to follow the Fed and hike is high, absent major FX market pressures. At this juncture we expect the MPC to keep the policy rate unchanged throughout the remainder of 2026.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Mexican interest rate projections for the next ten years from a panel of 42 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Mexican interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Mexican interest rate projections.
Want to get access to the full dataset of Mexican interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
New Zealand: -
Israel: Central Bank cuts rates again in September Latest bank decision: At its meeting on 1 September, the Central Bank decided to cut its policy rate by a... -
Dominican Republic: Central Bank leaves rates unchanged in August The BCRD stands pat for a 10th straight meeting: At its meeting on 31 August, the Central Bank of the... -
Korea: Bank of Korea raises rates for the second consecutive meeting Base rate reaches an over one-year high: At its meeting on 27 August, the Bank of Korea (BOK) decided to... -
Thailand: Bank of Thailand leaves rates unchanged in August Interest rates left on hold, as expected: At its meeting on 26 August, the Bank of Thailand (BOT) decided to... -
Hungary: Magyar Nemzeti Bank cuts rates in August Latest bank decision: At its meeting on 25 August, the Monetary Council of the Magyar Nemzeti Bank (MNB) decided to... -
Egypt: Central Bank of Egypt holds rates in August CBE extends easing-cycle pause: At its meeting on 20 August, the Central Bank of Egypt (CBE) decided to leave its...