The Central Bank of Mexico lowered its overnight interbank interest rate by 25bps to 8 percent during its August meeting, the first rate cut since June 2014, saying the balance of risks for growth remains biased to the downside while inflation expectations are relatively stable. Policymakers voiced concerns about the escalation of trade disputes, a disorderly Brexit, and the worsening of political and geopolitical risks. One member of the board voted to keep rates at 8.25 percent. Interest Rate in Mexico averaged 5.70 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 7.50 in 12 months time. In the long-term, the Mexico Interest Rate is projected to trend around 7.00 percent in 2020, according to our econometric models.