--- title: "Bank of Mexico Cuts Benchmark Interest Rate in Split Decision After Pause — Update" type: "News" locale: "en" url: "https://longbridge.com/en/news/280689152.md" description: "The Bank of Mexico has cut its benchmark interest rate by 0.25 percentage points to 6.75% in a split decision, with a 3-2 vote among board members. The central bank will assess future cuts based on macroeconomic conditions, amid rising inflation and uncertainties from the Middle East conflict. Inflation rose to 4.63% in March, influenced by food prices, while core inflation slightly decreased. The bank does not see immediate inflationary effects from recent tax changes and remains cautious about further rate cuts, despite the global energy situation." datetime: "2026-03-26T21:06:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280689152.md) - [en](https://longbridge.com/en/news/280689152.md) - [zh-HK](https://longbridge.com/zh-HK/news/280689152.md) --- # Bank of Mexico Cuts Benchmark Interest Rate in Split Decision After Pause — Update By Anthony Harrup MEXICO CITY--The Bank of Mexico lowered its benchmark interest rate Thursday in a split decision and said it will assess the timing for an additional cut in the future. The five-member board of governors voted 3-2 to cut the overnight interest-rate target by a quarter of a percentage point to 6.75%, resuming monetary easing after a pause in February. Deputy governors Jonathan Heath and Galia Borja voted to leave the rate at 7%. "Looking ahead, depending on the evolution of macroeconomic and financial conditions, the board will evaluate the appropriateness and timing for an additional reference rate cut," the central bank said. Analysts were divided in their views as to whether the central bank would extend the pause given the recent pickup in inflation and possible fallout from the conflict in the Middle East, or resume the monetary easing cycle. The 3-2 split in the vote, which was the closest since the easing cycle began, "reflects a board navegating a genuinely complex external environment" and sets the bar considerably higher for the next rate cut, Finamex Casa de Bolsa's chief economist Víctor Gómez Ayala said in a note. The Bank of Mexico said uncertainty around the conflict in the Middle East poses downside risks to economic growth, and adds a layer of uncertainty to the inflation outlook. The bank raised its inflation forecasts for the first three quarters of this year, but still expects inflation to reach its 3% target in the second quarter of 2027. Mexico's inflation rose to 4.63% in mid-March from 4.02% in February, led by a jump in fresh fruit and vegetable prices. Core inflation, which excludes energy and fresh food, slipped to 4.46% from 4.5%. The Bank of Mexico said there was no evidence of second-round inflationary effects from the higher taxes on soda and tobacco that took effect in January, or the increase in tariffs on imports from countries with which Mexico doesn't have a trade agreement. "The Bank of Mexico does not seem particularly concerned about the global energy shock and its impact on Mexico's inflation outlook," Capital Economics senior emerging markets economist Liam Peach said in a note. "In our view, the central bank is in no rush to cut interest rates again, but it still sees scope to do so." The war in the Persian Gulf has virtually halted shipping through the Strait of Hormuz and pushed global oil prices to three-and-a-half year highs. The Mexican government this week lowered taxes on gasoline after renewing an agreement with retailers to keep the price of regular gasoline under 24 pesos a liter, which is equivalent to about $5.10 a gallon. Tax relief for diesel was reinstated the previous week and increased this week. Write to Anthony Harrup at anthony.harrup@wsj.com (END) Dow Jones Newswires March 26, 2026 17:00 ET (21:00 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. ### Related Stocks - [MEXX.US](https://longbridge.com/en/quote/MEXX.US.md) - [FLMX.US](https://longbridge.com/en/quote/FLMX.US.md) - [EWW.US](https://longbridge.com/en/quote/EWW.US.md) ## Related News & Research - [5 ripple effects of a $10K stimulus check for every American, explained by ChatGPT](https://longbridge.com/en/news/286673464.md) - [Coffee prices aren’t the only problem. How retirees can fight inflation.](https://longbridge.com/en/news/286675059.md) - [The robber baron Long Island Rail Road strike](https://longbridge.com/en/news/286901134.md) - [Inflation surge pushes more Americans into side hustles](https://longbridge.com/en/news/286858895.md) - [Gundlach's Bond Coupon Cut Is No Match For Inflation](https://longbridge.com/en/news/286435054.md)