Banxico Holds Rates at 6.5% and Splits From the Fed

Banco de México held its overnight interbank target at 6.50% after a unanimous decision on 24 September 2026, marking its third consecutive meeting without a rate change and coming eight days after the U.S. Federal Reserve raised rates. In its written communication, Banxico said policy would not react mechanically to U.S. moves because Mexico’s macro conditions differ from those in the U.S. The Fed’s range after its 16 September hike sits at 3.75% to 4.00%. Banxico’s four considerations included the exchange rate and the difference in economic cycles; it also cited the lack of domestic demand pressure and that policy is already restrictive. Inflation is within Banxico’s 3% target band, but the central bank doesn’t expect headline inflation to settle at 3% until Q4 2027.