Overview
- The Banco de México Governing Board voted 3-2 on Thursday, November 5, 2026, to lower the policy rate by 25 basis points to 6.25 percent, with the change effective tomorrow.
- Three board members — Victoria Rodríguez Ceja, Omar Mejía and Gabriel Cuadra — backed the cut while Jonathan Heath and Galia Borja dissented.
- The decision surprised markets because recent private surveys and major bank analyses, including a Citi survey and Bank of America forecasts, had broadly expected the rate to be held at 6.50 percent.
- Analysts warned the cut raises the risk of further peso weakness and higher market volatility, noting that the peso had lost about 10 percent in the prior two months and that currency flows will depend on Banxico’s follow-up guidance.
- The 6.25 percent rate is the lowest reference level since March 2022 and it leaves markets focused on the central bank’s statement for clues about the timing and size of any additional easing and on how lower borrowing costs will affect households and businesses.