Banxico's Cuadra argues for further rate holds

MEXICO CITY - Mexico Central Bank Deputy Governor Gabriel Cuadra argued that the monetary authority should hold its benchmark interest rate further at 6.50% in light of a complex inflation outlook, he said in an interview published on Wednesday.

The timing of any rate adjustment is not predetermined and will depend on how inflation evolves, he added in the interview with local outlet Bloomberg Linea.

• "I am seeing a scenario with a certain degree of complexity. We have a balance (of factors) that is delicate, I think we would have to maintain this interest rate," he said. "How long can the rate stay there? We don't know," he added.

• The central bank's next policy decision is June 25.

• Cuadra said the debate should focus on the inflation outlook rather than whether Banxico can keep cutting rates, and reiterated that price pressures are expected to ease as temporary shocks dissipate, although risks remain and forecasts could still change if new pressures emerge.

• The central bank's benchmark rate currently stands at 6.50% after a 25-basis-point cut at its May 7 meeting, which central bank officials have indicated is likely to mark a pause in the easing cycle.

(Reporting by Raul Cortes; Editing by Aida Pelaez-Fernandez)

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This story was originally published June 17, 2026 at 11:40 AM.