Banxico to Keep Benchmark Rate at 6.5% Amid Global Risks

Mexico’s central bank, Banxico, said it will hold the benchmark interest rate at 6.5% following its June 24 meeting. The decision comes as headline inflation eased to 4.57% in the first half of June, down from 4.63% in March and continuing a downward trend since April’s 4.52% reading.

Banxico judged the current monetary stance suitable to face domestic challenges but warned that external factors, notably tensions in the Middle East, remain a risk to global inflation. The bank noted that recent U.S.–Iran diplomatic progress has helped temper energy prices.

The institution projected a modest slowdown in economic growth, cutting its 2026 GDP forecast to about 1.1% and expecting a recovery in the second quarter of 2026 after a recent contraction. It highlighted lingering weakness in private consumption, investment and the labour market, while external demand and tourism linked to the 2026 World Cup continue to support the economy.