Bank of Mexico released its quarterly inflation report and revised up its economic growth outlook. At the same time, it indicated that achievement of the 3% inflation target would be delayed, and reiterated its intention to maintain the policy rate at 6.50%.
Bank of Mexico released its latest quarterly inflation report and raised its 2026 growth outlook from 1.1% to 1.5%. It also assessed that economic activity had contracted in the first quarter but expanded more than expected in the second quarter.
For the inflation outlook, the bank projected that headline inflation would reach the 3% target in the fourth quarter of 2027, later than previously forecast. The bank maintained its view that moderate growth is likely to continue.
On monetary policy, it reiterated that maintaining the policy rate at 6.50% is currently considered appropriate. It cited USMCA uncertainty, slower exports resulting from a slowdown in the US economy, geopolitical tensions, sharp financial market volatility and extreme weather as risks going forward.