The Bank of Mexico held its benchmark interest rate at 6.50% for a third consecutive meeting, with its five-member board voting unanimously in line with expectations. Banxico removed language from its previous three statements indicating that it expected to keep the rate at its current level, leaving future decisions dependent on the ongoing disinflation process, exchange-rate pass-through, economic slack and inflation expectations. The bank retained its forecast for headline inflation to converge with its 3% target in the fourth quarter of 2027, while keeping the inflation-risk balance tilted to the upside. It also maintained its assessment that weaker-than-expected non-core inflation warranted a lower third-quarter 2026 headline inflation forecast, alongside a slight increase to its core inflation forecast. Economic slack is expected to persist throughout the forecast horizon, with downside risks to activity, while uncertainty remains linked to U.S. economic policy and geopolitical conflicts. Banxico said Mexican monetary policy does not automatically need to follow the Federal Reserve, which raised its benchmark rate by 25 basis points in September.