The Central Bank of Mexico held its overnight interbank interest rate at a decade high of 8.25 percent during its May meeting, saying inflation expectations for the long term remained unchanged. One member of the board voted for a 25-bps cut. The annual inflation rate in Mexico decreased to 4.28 percent in May 2019 from 4.41 percent in April and below market consensus of 4.36 percent. Policymakers also noted that the balance of risks for growth has become more uncertain and remains biased to the downside. Interest Rate in Mexico averaged 5.68 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.