LatinNews Daily - 29 April 2026

*The governor of Mexico’s central bank (Banxico), Victoria Rodríguez Ceja, has said that the bank’s board is considering one final interest rate cut before bringing an end to the easing cycle it began in May 2024. Speaking before the senate’s finance committee, Rodríguez said that “I believe we are close to the end of the rate cutting cycle”, noting this had seen a reduction in the benchmark interest rate of 450 basis points. Banxico last announced a rate cut of 25 basis points in March bringing the rate to 6.75%. “The factors driving inflation suggest that there will be no demand pressures over the forecast horizon; therefore, in our next decision, we will consider making a final adjustment to the rate-cutting cycle,” said Rodríguez, adding that this would bring Banxico to a monetary stance that “continues to support the convergence of inflation toward the target” of 3%. She said this level would be higher than that historically seen with similar macroeconomic conditions, to factor in current inflationary challenges including the US-Israeli war on Iran. The board is due to announce its next monetary policy decision on 7 May.

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