GLOPRAGlobal Property Radar

Mexico interest rate cut to 6.25% in November 2026

Banco de Mexico cut its policy rate by 25 basis points to 6.25% on a 3-2 vote, while headline annual inflation climbed to 3.62% in the first half of October.

The facts

  • Banco de Mexico lowered its target for the overnight interbank interest rate by 25 basis points to 6.25%, in a statement dated 5 November 2026, with the new level effective 6 November 2026.
  • Three of five board members backed the cut: Victoria Rodriguez, Gabriel Cuadra and Omar Mejia. Galia Borja and Jonathan Heath voted to hold at 6.50%.
  • Headline annual inflation rose from 3.42% in the first half of September to 3.62% in the first half of October 2026, a move the bank attributes to the non-core component.
  • Core inflation barely moved over the same two readings, from 3.79% to 3.78%.
  • The board expects inflation to converge on its target in the fourth quarter of 2027, and states that the balance of risks remains biased to the upside.
  • Holding the rate at its current level for an extended period will support that convergence, according to the statement.

What it means for your money

  • Peso borrowing is 25 basis points cheaper from 6 November. The saving lands on the first instalment.
  • Glopra data put the Mexican average at 2,503 US dollars per square metre with a rent of 14.05 US dollars per square metre a month, so the cut touches the financing side of that equation and not the price side.
  • For an existing landlord in Mexico the gain arrives only at the next refinancing or on a variable-rate loan; a fixed peso mortgage signed earlier is unaffected.
  • Upside inflation risk cuts the other way: a real return calculated against 3.62% headline inflation is thinner than the same nominal rent suggests.

What to watch

  • The phrase "extended period" is the operative one. The bank is signalling a pause, not a sequence of cuts.
  • A 3-2 split is a narrow mandate, and Borja and Heath dissenting means the next decision is not settled.
  • Convergence is dated to the fourth quarter of 2027, which is the bank's own expectation rather than a measurement.

Sources: Banco de Mexico https://www.banxico.org.mx/publications-and-press/announcements-of-monetary-policy-decisions/%7B2E04D4F1-397A-2B77-F666-252D80D8EC69%7D.pdf

Market data: Guadalajara · Mexico · Mexico City · Los Cabos