MNI BRIEF: No Predetermined Path For Banxico Rate - Rodriguez

Central Bank of Mexico governor Victoria Rodriguez Ceja said Wednesday the board does not have a predetermined path for the policy interest rate for next year, though they expect that various factors will help mitigate inflationary pressures.

"For next year we do not have a predetermined path for the policy rate in the current easing cycle. However, we expect that various factors will help mitigate inflationary pressures," she said during a virtual presentation of the central bank’s economic update for the third quarter of 2025, adding that officials still "see room to cut the policy rate."

She noted that while the real interest rate has moved into the estimated neutral range, that's difficult to pinpoint precisely, and policymakers do not base their decision solely on that metric.

"We have reiterated in various communications that the conduct of monetary policy cannot rest solely and exclusively on the point comparison between the observed real rate and the neutral," she said.

Rodriguez said that domestic financial markets remained relatively stable. "In particular, the national currency has shown orderly behavior characterized by a trend toward appreciation and reduced volatility." (See MNI POLICY: Banxico Split on FX Effects As US Spread Narrows)