MNI Banxico Review – May 2026: Final Cut as Easing Cycle Ends
May-08 09:38By: Keith Gyles
Mexico
Hidden PDF
Executive Summary
- Banxico’s governing board cut the overnight rate by 25bp to 6.50% at its May meeting, in line with expectations. Once again, the decision was split 3-2, with Deputy Governors Borja and Heath both voting for no change.
- In the accompanying policy statement, the Board highlighted weak economic activity and the uncertain external environment, while inflation is still seen converging to target in Q2 2027, even as near-term risks have risen. Looking ahead, the committee expects that it will be appropriate to keep the policy rate at the current level, thus signalling an end to the current easing cycle.
- Analysts expect the policy rate to stay on hold ahead, although some still see risks of a renewed cut towards year-end or next year.
