Created
: 2025.10.16
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Banxico Deputy Governor urges caution on rate cuts amid sticky inflation
World FX news
Breaking news
Banxico Deputy Governor urges caution on rate cuts amid sticky inflation
New
2025.10.16 01:00
2025.10.16 01:00
2025.10.16 01:00
Banco de Mexico (Banxico) Deputy Governor Jonathan Heath crossed the newswires in a podcast by Grupo Financiero Banorte on Wednesday. He reiterated the central bank should be more cautious in cutting interest rates, given the scenario of sticky core inflation, and headline inflation remaining above target.
Banxico had cut rates for ten consecutive meetings, including the September 25 reunion, in which the bank slashed rates 25 basis points, on a 4-1 vote split, with Heath voting to hold rates.
Heath said, "The inflation target is not below 4%. The inflation target we have is specific, it's 3%. The plus or minus 1% range is a range of variability ... The fact that inflation is just under 4% is irrelevant; we are not meeting the inflation target."
He observed that continued increases in labor costs and internation food prices are slowing inflation convergence towards Banxico's 3% goal. Regarding core inflation which rose to 4.28% in September, said that is "showing no sign that it wants to go down."
USD/MXN Price Chart - Daily
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.
Last updated
: 2025.10.16
Related articles
FX Today: Australian jobs report and UK GDP data come to the fore
25 minutes agoNZD/USD extends losses amid RBNZ's dovish stance and US-China trade tensions
34 minutes agoFed's Miran: Current fed policy is more restrictive than people think because the neutral rate has fallen
2025.10.16 02:08US Dollar retreats against Canadian Dollar as Fed signals rate cuts, Oil caps CAD recovery
2025.10.16 01:43USD/JPY retreats as Greenback weakens on trade tensions, Fed easing bets and US fiscal gridlock
2025.10.16 01:05Banxico Deputy Governor urges caution on rate cuts amid sticky inflation
2025.10.16 00:59
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
FX Today: Australian jobs report and UK GDP data come to the fore
The US Dollar (USD) added to its weekly correction, briefly slipping back to multi-day lows on the back of the renewed offered stance, a better tone in the risk complex and persistent bets on rate cuts by the Fed in the latter part of the year.
New
2025.10.16 03:35NZD/USD extends losses amid RBNZ's dovish stance and US-China trade tensions
The New Zealand Dollar (NZD) remains on the defensive against the US Dollar (USD) on Wednesday, extending its losing streak to a seventh consecutive session as investors continue to punish the Kiwi despite a broadly weaker Greenback.
New
2025.10.16 03:26Dow Jones Industrial Average briefly explores higher ground as earnings drive the narrative
The Dow Jones Industrial Average (DJIA) found room on the high side on Wednesday, climbing into a second day of recovery flows and testing territory north of 46,600 before settling back to flat for the day.
New
2025.10.16 03:12Silver rallies on safe-haven demand amid US-China tensions, Fed rate cut bets
Silver (XAG/USD) resumes its rally on Wednesday, trading around $52.40 per troy ounce at the time of writing, up 2.40% on the day, as investors seek safety amid renewed global tensions and growing expectations of additional monetary easing by the US Federal Reserve (Fed).
New
2025.10.16 02:10Fed's Miran: Current fed policy is more restrictive than people think because the neutral rate has fallen
Federal Reserve Governor Stephen Miran spoke at the Nomura Research Forum in Washington, DC. He stated that AI investment could lead to a higher neutral interest rate, and that recent policy changes, including immigration, have resulted in rapid shifts in the neutral rate.
New
2025.10.16 02:08US Dollar retreats against Canadian Dollar as Fed signals rate cuts, Oil caps CAD recovery
USD/CAD trims losses on Wednesday, back around 1.4040 at the time of writing, after hitting an intraday low of 1.4026. More broadly, the US Dollar (USD) is consolidating against the Canadian Dollar (CAD) after peaking near 1.4080 on Tuesday.
New
2025.10.16 01:43USD/JPY retreats as Greenback weakens on trade tensions, Fed easing bets and US fiscal gridlock
The Japanese Yen (JPY) trades on the front foot against the US Dollar (USD) on Wednesday, with USD/JPY extending losses for a second straight day as the Greenback weakens under pressure from escalating US-China trade tensions and a dovish Federal Reserve (Fed) outlook.
New
2025.10.16 01:05Banxico Deputy Governor urges caution on rate cuts amid sticky inflation
Banco de Mexico (Banxico) Deputy Governor Jonathan Heath crossed the newswires in a podcast by Grupo Financiero Banorte on Wednesday.
New
2025.10.16 00:59GBP/USD climbs as Bessent softens US stance, Powell's dovish tilt
The Pound Sterling recovers some ground, advances 0.60% on Wednesday during the North American session as Sino-US tensions eased on comments of US Treasury Secretary Scott Bessent. The GBP/USD trades at 1.3396 after bouncing off daily lows of 1.3309.
New
2025.10.16 00:43AUD/USD rises as RBA flags inflation risks, Fed dovishness weighs on USD
AUD/USD advances by 0.40% to trade around 0.6510 on Wednesday at the time of writing. The Australian Dollar (AUD) gains ground after Sarah Hunter, Assistant Governor of the Reserve Bank of Australia (RBA), warned on Wednesday that inflation risks in the economy remain tilted to the upside.
New
2025.10.16 00:11Disclaimer:
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.
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
