The peso and the central bank behind it: Banco de México holds its target rate at 6.50 per cent

Background

The spending announced this week for Mexico's social security institute, like all federal spending, is reckoned in pesos, the currency issued by the country's central bank, Banco de Mexico, also called Banxico. In its latest monetary policy announcement, Banco de Mexico said the target for the overnight interbank interest rate, known in Spanish as the Tasa de Interes Interbancaria a 1 dia, stays unchanged at 6.50 per cent. The bank's governing board cut the rate at its March and May meetings of 2026, bringing it down from 7.00 per cent, and has held it unchanged since. Banco de Mexico publishes these decisions on a pre-announced calendar and has done so since 2001.