Mexico’s Central Bank Raises Interest Rate to Record 11.25 Percent Amid Persistent Inflation
Mexico City, Mexico – In a move aimed at curbing stubbornly high inflation, the Bank of Mexico, also known as Banxico, announced today an increase in its benchmark interest rate by 25 basis points to a historic level of 11.25 percent. The decision, made by a majority vote of the central bank’s governing board, marks the highest borrowing cost on record for Mexico. Officials cited elevated core inflation, which remains above the target range, and persistent global price pressures as key drivers of the policy tightening. This action is expected to impact borrowing costs for consumers and businesses across Mexico, influencing mortgage rates and credit card interest. Analysts predict the rate adjustment could slow economic growth in Mexico during the upcoming quarter as the central bank prioritizes price stability.