Overview

• The Banco de México marked its 100th anniversary on September 1, highlighting a legacy transformed by its 1994 autonomy and single mandate to preserve price stability.
• Commentary and analysis warn that the Governing Board’s political homogeneity and upcoming turnover, including the eventual end of Jonathan Heath’s term, could weaken perceived independence.
• Banxico recently raised its 2025 growth forecast to 0.6% and projects inflation converging to the 3.0% target by the third quarter of 2026, signaling cautious policy easing ahead.
• A 2008 episode recounted this week describes then-governor Guillermo Ortiz raising the policy rate to 7.75% despite presidential and finance ministry pressure, a move cited as a defense of autonomy.
• Beyond rate decisions, Banxico’s core functions include issuing and withdrawing currency, managing international reserves, overseeing payment systems, supervising the financial system, and serving as the government’s banker and lender of last resort.