The Bank of Mexico cut the interbank interest rate by 25 basis points to 7.75%.

MEXICO CITY.- This Thursday, the Bank of Mexico (Banxico) reduced the pace of downward adjustments by 25 basis points , after four consecutive half-point cuts, with which the interest rate went from 8% to 7.75% .

This level of monetary restriction, to contain rising consumer prices, is similar to that in place in June 2022, when inflationary shocks stemming from the pandemic, a surge in Covid-19 cases in China, and headline inflation in our country stood at 7.88%.

With all its members present, the Board of Governors of #BancodeMéxico decided by majority to reduce the One-Day Interbank Interest Rate to 7.75%, effective August 8, 2025. See the statement at: https://t.co/tnCGzMdauN pic.twitter.com/ZO0pWyrz9t

— Bank of Mexico (@Banxico) August 7, 2025

This was announced by the Mexican central bank in its Monetary Policy Announcement following its Board of Governors meeting on Thursday, following the July inflation report released this morning by INEGI, which highlights a slowdown from 4.32% to 3.51%, marking a two-month decline.

In July 2025, the National Consumer Price Index (NCPI) stood at 140,780, representing a 0.27% increase compared to the previous month. With this result, annual headline inflation was 3.51%. By component, annual inflation was as follows:

▪️4.23% underlying… pic.twitter.com/tY2VOtQ71B