Home›Forex›Central Banks›Banxico holds interest rates at 6.50% for fourth strai…

Banxico holds interest rates at 6.50% for fourth straight meeting

Banxico kept its policy rate steady in a unanimous decision, maintaining low and stable inflation near its 3.0% target.

Reported · Written up by our desk · Central Banks

Bank of Mexico, known as Banxico, held its interest rate unchanged at 6.50% in a unanimous decision, marking the fourth consecutive time it kept policy steady, according to FXStreet.

The central bank’s mandate includes preserving the value of the Mexican peso (MXN) and keeping inflation low and stable within target levels near 3.0%, in a tolerance band of 2.0% to 4.0%.

FXStreet also noted that Banxico uses its interest rate setting as its main monetary policy tool, with higher rates intended to help tame inflation when it runs above target. It added that the rate differential versus the US Federal Reserve is a key driver for MXN, since higher relative yields can support the currency and lower rates can weaken it.

More like this

Sources