Select Language

Banxico cuts rates 25 bps to 7.50% as expected, further easing eyed

Breaking news

Banxico cuts rates 25 bps to 7.50% as expected, further easing eyed

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.09.26 04:05
Banxico cuts rates 25 bps to 7.50% as expected, further easing eyed

update 2025.09.26 04:05

The Bank of Mexico reduced its main reference rates by 25 basis points as expected, to 7.50% with not an unanimous decision, with a 4 to 1 vote split, with Deputy Governor Jonathan Heath, once against voting to hold rates unchanged. developing story, more to come ...

Banxico FAQs

The Bank of Mexico, also known as Banxico, is the country's central bank. Its mission is to preserve the value of Mexico's currency, the Mexican Peso (MXN), and to set the monetary policy. To this end, its main objective is to maintain low and stable inflation within target levels - at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%.

The main tool of the Banxico to guide monetary policy is by setting interest rates. When inflation is above target, the bank will attempt to tame it by raising rates, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN. The rate differential with the USD, or how the Banxico is expected to set interest rates compared with the US Federal Reserve (Fed), is a key factor.

Banxico meets eight times a year, and its monetary policy is greatly influenced by decisions of the US Federal Reserve (Fed). Therefore, the central bank's decision-making committee usually gathers a week after the Fed. In doing so, Banxico reacts and sometimes anticipates monetary policy measures set by the Federal Reserve. For example, after the Covid-19 pandemic, before the Fed raised rates, Banxico did it first in an attempt to diminish the chances of a substantial depreciation of the Mexican Peso (MXN) and to prevent capital outflows that could destabilize the country.


Date

Created

 : 2025.09.26

Update

Last updated

 : 2025.09.26

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Dow Jones Industrial Average drops as fresh trade fears rattles markets

The Dow Jones Industrial Average (DJIA) struggled on Wednesday, declining a little over 500 points at its lowest point on the day.
New
update2025.10.23 04:01

FX Today: Attention remains on US-China trade and US shutdown

The US Dollar (USD) snapped a multi-day positive run, coming under renewed downside pressure after hitting fresh weekly highs amid somewhat mitigated concerns on the US-China trade front, while the lack of news surrounding a deal to end the US federal government shutdown continued to prevail.
New
update2025.10.23 03:34

WTI gains traction amid surprise US inventory draw and weaker Greenback

West Texas Intermediate (WTI) Crude Oil edges higher on Wednesday, extending gains for the second consecutive session as traders react to a surprise draw in US inventories.
New
update2025.10.23 03:19

Gold extends losses ahead of key US inflation report

Gold price slides over 1.50% on Wednesday after plummeting more than 5% on Tuesday in its biggest daily loss in five years as traders brace for the release of the latest inflation report in the United States (US). At the time of writing, XAU/USD trades at $4,050 after reaching a high of $4,161.
New
update2025.10.23 03:06

USD/CHF steadies on trade optimism, Swiss deflation pressures

The USD/CHF pair is down 0.10% on Wednesday, trading around 0.7950 at the time of writing, after bouncing from the 0.7900 area earlier this week.
New
update2025.10.23 02:05

AUD/USD rises modestly on trade optimism as eyes turn to PMI, US inflation

AUD/USD trades slightly higher around 0.6500 on Wednesday at the time of writing, up about 0.10% for the day. The pair benefits from a renewed risk-on mood, as investors welcome more constructive signals on the trade front between the United States (US) and China.
New
update2025.10.23 00:53

EUR/USD Price Forecast: Euro finds footing as US Dollar slips from one-week highs

The Euro (EUR) edges higher against the US Dollar (USD) on Wednesday, snapping a three-day losing streak as the Greenback loses momentum. At the time of writing, EUR/USD is trading around 1.1611, bouncing off the intraday low near 1.1576.
New
update2025.10.23 00:52

GBP/USD steady near 1.3360 post soft UK CPI

GBP/USD holds firm during the North American session after the latest inflation report in the Great Britain, triggered some weakness on Sterling as expectations for further easing by the Bank of England, increased. The pair trades at 1.3362 virtually unchanged after diving to 1.3305 post CPI data.
New
update2025.10.23 00:47

EUR/JPY steadies near 176.00 as Japan's stimulus and BoJ-ECB divergence weigh

The Euro (EUR) steadies against the Japanese Yen (JPY) on Wednesday, trading around 176.26 after snapping a four-day losing streak on Tuesday.
New
update2025.10.22 23:38

EUR/CHF rebounds from 11-month low amid ECB, SNB policy signals

The Euro (EUR) steadies against the Swiss Franc (CHF) on Wednesday, recovering after briefly hitting an 11-month low near 0.9205 on Tuesday. At the time of writing, EUR/CHF trades around 0.9240, as the Euro stages a mild technical rebound from oversold conditions.
New
update2025.10.22 22:32

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel