June 12, 2025
Mexico’s Central Bank Governor, Victoria Rodríguez Ceja, called for confidence in the country’s financial system and broader economy on Wednesday, aiming to ease concerns over rising inflation and sluggish growth in Latin America’s second-largest economy.
In its biannual Financial Stability Report, the Bank of Mexico (Banxico) painted an optimistic picture, emphasizing the resilience of the nation’s financial system despite global economic headwinds and ongoing trade tensions with the United States.
“Mexico’s financial system has demonstrated resilience in a global context marked by slowing economic activity,” the report stated, noting that the banking sector remains well-capitalized and liquid. Stress tests indicate that banks are well-positioned to withstand adverse scenarios.
Governor Rodríguez underscored the strength of Mexico’s macroeconomic fundamentals during the report’s presentation. “Our country has a solid macroeconomic framework,” she affirmed.
While acknowledging the recent uptick in inflation, as headline inflation rose to 4.42% in May and surpassed Banxico’s target range, Rodríguez downplayed fears of a prolonged inflationary period. She emphasized that inflation remains on a downward path, far below the 2022 peak of 8.7%.
Core inflation, which excludes volatile items such as food and energy, climbed to 4.06%, its highest level in nearly a year. Nonetheless, Banxico projects inflation will begin to decline in the third quarter of 2025 and converge with its 3% target by the third quarter of 2026.
“It would be premature to conclude that Mexico is entering a period of persistently high inflation,” Rodríguez said.
She reiterated the central bank’s stance on gradually easing monetary policy, following a 50 basis-point cut to the benchmark interest rate last month. A Reuters poll of economists suggests Banxico may implement a fourth consecutive rate cut at its upcoming meeting on June 26, despite the recent inflation data.
Source: (Reuters)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.