---
title: "Mexico central bank cuts rates but signals caution ahead"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285601542.md"
description: "Banxico has cut the benchmark interest rate to 6.5% from 6.75%, with a split vote among board members. While some members voted to maintain rates, the majority opted for the cut. The board anticipates maintaining the current rate moving forward, with headline inflation expected to reach target levels by Q2 2027. Forecasts for average annual headline and core inflation for Q4 2026 and 2027 remain unchanged at 3.5% and 3.0%, respectively."
datetime: "2026-05-07T19:04:56.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285601542.md)
  - [en](https://longbridge.com/en/news/285601542.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285601542.md)
---

# Mexico central bank cuts rates but signals caution ahead

Banxico lowered the Benchmark interest rate to 6.5% from 6.75% as expected.

-   Board members Heath and Borja voted to hold rates steady.
-   Board members Rodriguez, Mejia, and Cuadra voted to cut rates.
-   The board was not unanimous on the rate decision.
-   Benchmark interest rate lowered to 6.50% from 6.75%.
-   Headline inflation is projected to converge to target in Q2 2027.
-   Looking ahead, the board estimates it will be appropriate to maintain the rate at its current level.
-   Forecasts Q4 2026 average annual headline inflation at 3.5% versus previous forecast of 3.5%.
-   Forecasts Q4 2027 average annual core inflation at 3.0% versus previous forecast of 3.0%.
-   Forecasts Q4 2026 average annual core inflation at 3.4% versus previous forecast of 3.4%.
-   Forecasts Q4 2027 average annual headline inflation at 3.0% versus previous forecast of 3.0%.

### Related Stocks

- [EWW.US](https://longbridge.com/en/quote/EWW.US.md)

## Related News & Research

- [S&P revises Mexico's outlook to 'negative' on debt, growth concerns](https://longbridge.com/en/news/286162845.md)
- [$92 to fill up a Camry? Why your gas bill is exploding despite 'low' inflation](https://longbridge.com/en/news/286576463.md)
- [The Trading Awards: Voting is open until 19 May](https://longbridge.com/en/news/286793607.md)
- [RBA Minutes: Inflation projected to remain above target until 2027 after 8-1 rate hike vote](https://longbridge.com/en/news/286871114.md)
- [EMERGING MARKETS-LatAm assets set for weekly losses on political uncertainty, inflation concerns](https://longbridge.com/en/news/286612207.md)