# Banxico Holds Rate; Inflation Near Target > Live situation record from CLSTR: https://clstr.news/situations/mexicos-banxico-rate-pause-and-slowdown > Updated: 2026-08-07T00:12:51.000Z. Sources: 68. Developments: 8. Banxico kept its benchmark policy rate at 6.5% on 7 August 2026, extending the pause that began in June as inflation continued to ease. July CPI data from INEGI showed annual inflation at 3.12%, the lowest since May 2020, with core inflation at 3.95% year‑on‑year and the monthly index rising only 0.03%. President Claudia Sheinbaum credited the decline to the “Paquete Contra la Inflación y la Carestía” (PACIC), which caps a basket of 24 basic goods at 913 pesos per week and imposes price caps on gasoline (24 pesos per litre) and diesel (27 pesos per litre). She warned that without these measures inflation could roughly double. The data lifted market sentiment: the peso strengthened to about 17.13 per U.S. dollar, its strongest in four months, and analysts see the slowdown as supporting Banxico’s pause and possibly paving the way for future rate cuts. Banxico reiterated its commitment to low, stable inflation and signaled the rate will likely stay at 6.5% through the rest of 2026, while noting heightened external risks from geopolitical tensions and the U.S. Federal Reserve’s stance. ## Claims - Mexico's annual inflation in July 2026 was 3.12 %. (corroborated by 15 sources) - Inflation fell from 3.37 % in June 2026 to 3.12 % in July 2026. (corroborated by 14 sources) - Core (underlying) inflation was 3.95 % year‑over‑year in July 2026. (corroborated by 14 sources) - The July 2026 inflation rate was the lowest level since May 2020. (corroborated by 13 sources) - President Claudia Sheinbaum said that without the PACIC and gasoline/diesel agreements inflation would be at least double. (corroborated by 6 sources) - The PACIC program caps a basket of 24 basic goods at 913 pesos per week. (corroborated by 6 sources) - Banxico kept its benchmark interest rate at 6.5 % on 7 August 2026. (corroborated by 5 sources) - Banxico is expected to keep its benchmark interest rate at 6.5% in the upcoming decision. (corroborated by 3 sources) - One analyst expects a 25‑basis‑point cut to the benchmark rate. (corroborated by 3 sources) - The median forecast from 28 analysts sees the rate holding at 6.5% through the end of 2026. (corroborated by 3 sources) - 26 analysts project the rate holding at 6.5% through the end of 2027. (corroborated by 3 sources) ## Timeline ### 2026-08-07: Mexico inflation falls to 3.12% in July 2026 Mexico’s July 2026 inflation fell to 3.12 % (down from 3.37 % in June); core inflation was 3.95 %; Banxico kept rates at 6.5 %; Sheinbaum credited PACIC and fuel deals; the peso rose to ~17.13 per dollar. 22 sources. https://clstr.news/cluster/bank-of-mexico-and-nicaragua-keep-benchmark-rates-unchanged ### 2026-08-04: Banxico keeps benchmark interest rate at 6.5% Banxico kept its benchmark rate at 6.5% as inflation slowed to 3.1% headline and 3.94% core, with analysts expecting the pause to last through 2026‑27. 35 sources. https://clstr.news/cluster/paraguay-inflation-drops-to-16-as-perus-puno-cpi-barely-rises-in-july-2026 ### 2026-07-09: Mexico and Peru Central Banks Hold Key Rates Steady Mexico's Banxico and Peru's BCRP each left their benchmark rates unchanged (6.5% and 4.25%) citing inflation concerns and economic uncertainties, signaling a pause in monetary tightening. 3 sources. https://clstr.news/cluster/mexico-and-peru-central-banks-hold-key-rates-steady ### 2026-07-09: Banxico to Keep Benchmark Rate at 6.5% Amid Global Risks Banxico will keep its benchmark rate at 6.5%, citing easing inflation but warning of global risks, and forecasts modest growth with a recovery expected by 2026. 2 sources. https://clstr.news/cluster/banxico-to-keep-benchmark-rate-at-65-amid-global-risks ### 2026-06-26: Banco de México Holds Policy Rate at 6.5% Amid Ongoing Inflation Concerns Banxico left its policy rate at 6.5% on 25 June, citing persistent core inflation and upside risks, and expects inflation to reach 3% by Q2 2027. 2 sources. https://clstr.news/cluster/banco-de-mxico-holds-policy-rate-at-65-amid-ongoing-inflation-concerns ### 2026-06-18: Bank of Mexico Holds Rate at 6.5% as Pause in Cuts Extends Banxico kept its policy rate at 6.5% in June, pausing further cuts as inflation eases and external factors like lower energy prices and a U.S.–Iran peace deal support the stance, affecting peso volatility and T 3 sources. https://clstr.news/cluster/bank-of-mexico-holds-rate-at-65-as-pause-in-cuts-extends ### 2026-05-29: Banxico Halts Rate Cuts, Lowers 2026 Growth Forecast to 1.1% Banxico pauses rate cuts, holds the policy rate at 6.50% and trims its 2026 GDP growth forecast to 1.1%, citing weaker activity and persistent inflation risks, which may keep credit and mortgage rates steady. 2 sources. https://clstr.news/cluster/banxico-halts-rate-cuts-lowers-2026-growth-forecast-to-11 ### 2026-05-21: Mexico's construction slump deepens as Banxico pauses interest‑rate cuts Mexico's construction sector is in a two‑year decline, while Banxico holds the policy rate at 6.5% amid modest inflation and external risks. 2 sources. https://clstr.news/cluster/mexicos-construction-slump-deepens-as-banxico-pauses-interestrate-cuts --- Cite as: Banxico Holds Rate; Inflation Near Target. CLSTR, https://clstr.news/situations/mexicos-banxico-rate-pause-and-slowdown