The Central Bank of Mexico kept its benchmark interest rate at a 10-year high of 8.25 percent on 28 March 2019, as widely expected. The decision was unanimous. Policymakers noted that global growth prospects have deteriorated and that domestic prices declined recently, favored by non-core transitory factors. They also underscored that monetary policy will be particularly vigilant of the MXN in case global volatility persists. The annual inflation rate in Mexico declined to 3.94 percent in February 2019 from 4.37 percent in the prior month, matching market expectations. It is the lowest inflation rate since December 2016. Interest Rate in Mexico averaged 5.60 percent from 2005 until 2019, reaching an all time high of 9.25 percent in October of 2005 and a record low of 3 percent in June of 2014.
Interest Rate in Mexico is expected to be 8.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Mexico to stand at 8.25 in 12 months time. In the long-term, the Mexico Interest Rate is projected to trend around 8.50 percent in 2020, according to our econometric models.