Latest bank decision: At its meeting on 7 May, the Central Bank decided to cut the target for the overnight...
Banxico Target Rate in Mexico
Mexico's central bank policy rates over the last decade varied in response to economic conditions. Initially, rates were increased to control inflation, but were cut to stimulate growth during economic slowdowns, particularly during the COVID-19 pandemic. Post-pandemic, the focus shifted to controlling rising inflation, leading to increased rates before another easing cycle began in 2024 as inflation pulled back. However, interest rates remain above pre-pandemic levels.
The banxico target rate ended 2024 at 10.00%, compared to the end-2023 value of 11.25% and the figure a decade earlier of 3.00%. It averaged 6.93% over the last decade. For more interest rate information, visit our dedicated page.
Mexico Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Mexico from 2014 to 2025.
Source: Macrobond.
Mexico Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Banxico Target Rate (%, eop) | 5.50 | 10.50 | 11.25 | 10.00 | 7.00 |
| TIIE 28 Days Rate (%, eop) | 5.72 | 10.76 | 11.50 | 10.24 | 7.20 |
| 10-Year Bond Yield (%, eop) | 7.57 | 8.94 | 9.39 | 10.43 | 9.20 |
Central Bank cuts rates in May
Latest bank decision: At its meeting on 7 May, the Central Bank decided to cut the target for the overnight interbank interest rate by 25 basis points to 6.50%, taking total cuts since early 2024 to 475 basis points.
Weak economy and benign inflation forecast drive decision: The decision to cut was partly aimed at shoring up the economy, with the Bank highlighting in its statement that “economic slack is expected to be greater than previously anticipated.” In addition, the Bank expects headline and core inflation to converge to the center of the 2.0–4.0% target range over the coming year, providing the leeway to cut rates.
Rates to stay on hold: After substantial monetary easing over the last couple of years, our Consensus is for the Central Bank to not make any further interest rate cuts. This aligns with the Bank’s own forward guidance.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Mexican interest rate projections for the next ten years from a panel of 39 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Mexican interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Mexican interest rate projections.
Want to get access to the full dataset of Mexican interest rate forecasts? Send an email to info@focus-economics.com.
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