Banxico Holds Rate at 6.5% as Mexico's Q2 GDP Rebounds 1.4%
Updated
Updated · Finimize · Aug 24
Banxico Holds Rate at 6.5% as Mexico's Q2 GDP Rebounds 1.4%
2 articles · Updated · Finimize · Aug 24
Summary
Mexico’s central bank left its policy rate at 6.5% after Q2 GDP rebounded 1.4% quarter on quarter and early-August inflation rose to 3.26%.
INEGI said the expansion was the strongest quarterly gain since early 2022, reversing a revised 0.3% contraction in Q1, with all three major sectors growing despite a 0.1% monthly dip in June.
Core inflation ran hotter at 3.93%, reinforcing Banxico’s view that stronger growth and sticky underlying price pressure make near-term rate cuts harder to justify.
Minutes from the latest decision signaled officials still favor holding steady for an extended period, a stance that could keep short-term bond yields elevated and support the peso.