Overview

• Mexico’s policy rate stands at 7.50% after a 25‑basis‑point cut in late September, with the central bank saying it will assess additional moves.
• Deputy Governor Jonathan Heath, who dissented in the last three rate decisions, urged pausing or slowing easing until a clear disinflation trend is evident.
• Annual headline inflation was 3.76% in September, while core inflation measured 4.28% and has stayed above 4% for eight consecutive fortnights, led by goods and food.
• Heath cited Colombia’s more cautious playbook as a reference for how Banxico should approach the next steps in its easing cycle.
• Analysts still expect two more 25‑basis‑point cuts this year to end 2025 at 7.00%, while Heath said policy would be clearly neutral only after two additional trims.