Banxico has just cut its main policy rate by 0.25%, landing at 6.75%, aiming to keep Mexico’s economy growing after upbeat Q4 2025 momentum.
This was no easy call. With global inflation rising due to the Middle East conflict, Mexico faces intense pressure at home.
By mid-March, inflation hit 4.63%. If the peso keeps sliding because of lower yields, that number could climb even higher.
Officials see the finish line for rate cuts, eyeing one more to 6.5% to protect the peso while fuelling growth.
Energy dependence adds vulnerability
Even as an oil producer, Mexico isn’t energy self-sufficient. It’s ramping up refining, but nearly half its fuel still comes from the U.S. - bought at market prices in USD.
We continue to invest in Mexico within our neutral and dynamic portfolios.