Banxico’s Governor Rodriguez: Rate Cut Under Consideration Since September – El Financiero

Interest rate cuts have been under consideration at the Bank of Mexico (Banxico) since September, Governor Victoria Rodriguez Ceja told El Financiero in an interview.

In an unexpected decision last week, Banxico lowered interest rates from 6.50% to 6.25%, a reduction of 25 basis points approved by a 3-2 vote. Deputy Governors Galia Borja and Jonathan Heath voted to leave rates unchanged as inflation continued to climb, although it remains within the 3% plus or minus 1% range.

Turning to the exchange rate, she noted that the currency remains stronger than the average USD/MXN exchange rate recorded in 2025. She added: “The importance of exchange rate behavior under our free-floating regime lies in its potential impact on inflation. And we know that the pass-through of exchange rate fluctuations to consumer prices in Mexico is small. This is even more noticeable in an environment of slack.”

Looking ahead, she also said that “maintaining the rate at its current level – 6.25% – for an extended period will support the convergence of inflation to the target and will be adequate to address external macroeconomic challenges.”