Publications

Central banks should not become climate activists. They should treat climate change and mitigation policies as macroeconomic drivers which can affect inflation, output, financial conditions, monetary transmission and, most importantly, inflation expectations.

We present a summary and analysis of the most relevant developments and publications in Mexico's financial regulatory landscape

The Central Bank increased the interest rate by 100 basis points to 11.25% due to persistent core inflation and high inflation expectations. The decision was divided with 4 members supporting the increase.

The ECB kept rates unchanged and appeared comfortable with the current level. Lagarde noted that the euro’s appreciation and the recent dip in inflation were no surprise, shifting the focus toward economic resilience and longer-term issues.

Between 2025 and 2027, GDP will be driven by domestic demand: resilient household consumption, supportive public spending and investment boosted by a healthier construction sector. Persistently high inflation, cautious monetary policy and a wide fiscal deficit weigh on the outlook.

The Central Bank kept its policy rate at 9.25% for the fourth consecutive meeting, a decision reflecting caution amid persistent inflation risks and the ongoing economic recovery.

The Bank of the Republic will maintain stable interest rates through the remainder of 2025, with gradual reductions in the second half of 2026. This cautious approach responds to persistent inflation, strong consumption dynamics, and fiscal risks.