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last mo.

Sheinbaum Presses Banks to Pass On Banxico’s Rate Cut to SMEs

She said lower borrowing costs will spur business investment after Banxico’s June cut, warning that elevated inflation could temper the pace of future reductions.

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Overview

  • President Sheinbaum publicly backed Banco de México’s June decision to cut its benchmark rate by 50 basis points to 8%, saying the move will expand credit availability and investment.
  • She has repeatedly questioned commercial bankers on when they will lower lending rates so small and medium enterprises can access cheaper financing.
  • Banxico’s July meeting minutes revealed plans to scale future rate cuts to 25 basis points, a stance shaped by subgovernor Jonathan Heath’s dissent over persistent inflation pressures.
  • She attributed June’s 4.32% inflation spike to seasonal increases in food, housing and transport costs rather than the central bank’s monetary easing.
  • Her appeal complements a May agreement with the Mexican Banking Association to increase annual SME financing by 3.5% through 2030.