The Bank of Mexico (Banxico) held rates unchanged at 6.50% for the third consecutive meeting on Thursday in a unanimous decision, as expected by most analysts, after ending its easing cycle in May. In the monetary policy statement, the Governing Board said the balance of risks on inflation is tilted to the upside, and that "looking ahead, the Governing Board estimates that it will be appropriate to maintain the reference rate at its current level." The Mexican institution expects inflation to converge to its 3% target, plus or minus 1%, in the last quarter of 2027. For 2026, Banxico’s projection for headline and core inflation is 3.5%. Regarding economic activity, the central bank stated that “economic slack is expected to continue throughout the forecast horizon and significant downward risks to economic activity persist.”