The Bank of Mexico, known as Banxico, held its benchmark rate at 11.00% at its June 2024 meeting and at 6.5% in early August, according to the two source records, which refer to different policy dates. The June minutes showed unanimous support for keeping rates restrictive as headline inflation stood at 4.78% in May and core inflation at 4.16%, while officials debated when cuts could begin. The early-August record reported cooler inflation, with headline inflation at 3.10% in the first half of July and core inflation at 3.95%, but persistent services inflation above 4% since late 2021. Banxico now expects headline inflation to return to its 3% target in the fourth quarter of 2027. A peso that strengthened nearly 6% this year has helped contain imported price pressures, while Mexico’s economy rebounded 1.5% in the second quarter after contracting in the previous three months, supported by manufacturing exports and technology goods linked to artificial intelligence and technology supply chains. The records also cite risks from wage growth, supply-chain disruptions, U.S. monetary policy and geopolitical tensions. The June account said markets expected a possible 25-basis-point cut in the fourth quarter of 2024, while the early-August account said markets were pricing in a possible increase in the U.S. federal funds rate later in 2026.