MNI Banxico Review – Sep '25: Guidance Signals Further Q4 Cuts
Sep-26 10:08By: Keith Gyles
Mexico
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Executive Summary
- Banxico’s governing board cut the overnight rate by a further 25bp to 7.50%, as was widely expected. The decision was split once again, with Deputy Governor Heath voting to keep the policy rate on hold.
- While the committee still sees significant downside risks to growth, near-term core inflation forecasts have risen.
- Nonetheless, the forward guidance was unchanged, suggesting scope for further easing ahead, and analysts continue to expect additional 25bp cuts in Q4, with the policy rate reaching 7.0% by year-end.
