Banxico Holds Benchmark Rate at 6.5% in Unanimous Vote, Signals End of Easing Cycle

The Bank of Mexico's governing board unanimously voted to hold its benchmark interest rate at 6.5% at its June 25, 2026 meeting, confirming the two-year easing cycle that began in March 2024 has concluded. Headline inflation continued to ease, falling from 4.45% in April to 3.55% by mid-June, within Banxico's target tolerance range. Policymakers signaled they will likely keep the rate at this level going forward, citing upside risks from trade disruptions tied to the ongoing USMCA review, geopolitical tensions, persistent core inflation, and possible peso depreciation.