Banco de México lowers overnight interbank rate to 6.25%
What happened
Banco de México lowered its target for the overnight interbank rate by 25 basis points, setting the new rate at 6.25%. The central bank announced the cut on November 5, 2026, with it taking effect on November 6, 2026. The central bank noted that the peso has weakened since its previous decision on September 24, 2026.
From riotimesonline.com
Why it matters
The central bank raised its forecast for headline inflation in the last three months of 2026 to 3.7%, up from 3.5%. Despite this, the central bank still expects inflation to return to its 3% target in the last quarter. A lower Mexican rate and a softer peso affect those who hold Mexican bonds or sell goods in Mexico.
From riotimesonline.com
Who's involved
- central bankPublic institution that manages a state's currency, money supply, and interest rates
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The entities involved
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central bank
public institution that manages a state's currency, money supply, and interest rates