Mexico's central bank kept its benchmark interest rate unchanged at 4.25 percent on 17 December 2020, matching market expectations. The bank held borrowing costs steady for the second straight meeting after nearly 1-1/2 years of cuts, mentioning that this pause to easing cycle provides the necessary room to confirm that the trajectory of inflation converges to the target. Policymakers noted that the annual inflation dropped to 3.33% in November from 4.09% in October. The Committee underscored that economic activity started to recover in the third quarter of the year, although it remains below the levels prior to the pandemic in an environment of uncertainty and downward risks. Policymakers added will take the necessary actions in order for the policy rate to be consistent with the orderly and sustained convergence of headline inflation to the target. source: Banco de México

Interest Rate in Mexico averaged 5.74 percent from 2005 until 2020, reaching an all time high of 9.25 percent in October of 2005 and a record low of 3 percent in June of 2014. This page provides - Mexico Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Mexico Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on December of 2020.

Interest Rate in Mexico is expected to be 4.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Mexico to stand at 4.00 in 12 months time. In the long-term, the Mexico Interest Rate is projected to trend around 4.00 percent in 2021 and 5.50 percent in 2022, according to our econometric models.

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Mexico Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
4.25 4.25 9.25 3.00 2005 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-08-13 06:00 PM Interest Rate Decision 4.5% 5% 4.5% 4.5%
2020-09-24 06:00 PM Interest Rate Decision 4.25% 4.5% 4.25% 4.25%
2020-11-12 07:00 PM Interest Rate Decision 4.25% 4.25% 4% 4%
2020-12-17 07:00 PM Interest Rate Decision 4.25% 4.25% 4.25% 4.25%
2021-01-07 03:00 PM Monetary Policy Meeting Minutes
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
Mexico Holds Interest Rate at 4.25%
Mexico's central bank kept its benchmark interest rate unchanged at 4.25 percent on 17 December 2020, matching market expectations. The bank held borrowing costs steady for the second straight meeting after nearly 1-1/2 years of cuts, mentioning that this pause to easing cycle provides the necessary room to confirm that the trajectory of inflation converges to the target. Policymakers noted that the annual inflation dropped to 3.33% in November from 4.09% in October. The Committee underscored that economic activity started to recover in the third quarter of the year, although it remains below the levels prior to the pandemic in an environment of uncertainty and downward risks. Policymakers added will take the necessary actions in order for the policy rate to be consistent with the orderly and sustained convergence of headline inflation to the target.
2020-12-17
Mexico Unexpectedly Keeps Interest Rate at 4.25%
Mexico's central bank kept its benchmark interest rate unchanged at 4.25 percent on November 12th 2020, surprising markets that expected a 25bps cut. The bank held borrowing costs steady for the first time in nearly 1-1/2 years, mentioning that this pause to easing cycle provides the necessary room to confirm that the trajectory of inflation converges to the target. Policymakers noted that the annual inflation rose to 4.09% in October from 4.01% in August due to higher food and beverage prices, and projected that for the next 12-24 months it is expected to remain stable at levels above the goal of 3%. The Committee underscored that economic activity started to recover in the third quarter of the year, although it remains below the levels prior to the pandemic in an environment of uncertainty and downward risks. Policymakers added will take the necessary actions in order for the policy rate to be consistent with the orderly and sustained convergence of headline inflation to the target.
2020-11-12
Mexico Cuts Interest Rate for 11th Time
Mexico's central bank cut its benchmark interest rate for the eleventh straight meeting on September 26th, 2020, lowering it 25 basis points to 4.25% and bringing borrowing costs to its lowest since August of 2016. Economic activity in Mexico began to recover in June and July, although an environment of uncertainty and downside risks prevails. Annual inflation rose to 4.05% in August from 3.62% in July due to higher energy prices, while it remained stable at levels above the goal of 3%.
2020-09-24
Mexico Cuts Interest Rate to 4.5%
Mexico's central bank cut its benchmark interest rate for the tenth straight meeting on August 13th, 2020, lowering it 50 basis points to 4.5% and bringing borrowing costs to its lowest since August of 2016. Economic activity in Mexico sharply contracted during the second quarter of 2020, but various indicators point to a recovery in June as companies and businesses started to resume operations. Annual inflation rose to 3.62% in July from 3.33% in June due to higher energy prices but still remains close to the target.
2020-08-13

Mexico Interest Rate
In Mexico, interest rate decisions are taken by the Bank of Mexico (Banco de México). Starting January of 2008, Banco de México has adopted as an operating target the overnight interbank rate (tasa de fondeo bancario) instead of the level of commercial banks’ current account balances at the central bank (corto).