INSUBCONTINENT EXCLUSIVE:
The Bank of Mexico (Banxico) decided to keep its interest rate unchanged at 11%, halting its recent easing cycle
this announcement, the Mexican peso gained 0.37% against the U.S
dollar, trading at 16.83 pesos per dollar.Banxico began raising rates in June 2021, starting at 4.25%
Over 15 consecutive hikes, rates reached a record 11.25% by March 2023.In March 2024, Banxico began reducing rates with a modest
25-basis-point cut, signaling the start of a gradual rate-lowering cycle.Banxico Holds Interest Rate Steady at 11% Amid Inflation Concerns
(Photo Internet reproduction)However, inflation remains a concern
In April, inflation data from the National Institute of Statistics and Geography (INEGI) revealed that prices rose for the second
consecutive month, surpassing expectations.Headline inflation increased mainly due to spikes in non-core items like tomatoes and serrano
reflected its belief that the real interest rate was too high relative to the neutral rate.This decision was made based on past rates when
2025.By remaining cautious, Banxico seeks to balance inflation control with economic growth
