Banxico Cuts Interest Rate to 6.75%, Cetes Yields Drop Significantly

Banxico reduced its interest rate by 25 basis points to 6.75%, the lowest since March 2022, signaling a shift to support economic stability amid ongoing Middle East conflicts. This rate cut resulted in a broad decline in Cetes yields, especially the 28-day yield dropping to 6.64%, making government bonds more attractive for short-term investors. Watch for how the central bank’s move influences inflation and economic growth in the coming months.