Mexico's central bank held its benchmark interest rate steady for a second consecutive meeting on Thursday, reiterating its expectation to maintain the current level for the foreseeable future.

The bank's five-member board voted unanimously to keep the overnight rate target at 6.5%, a level deemed sufficient to navigate both domestic and international macroeconomic challenges. "Looking ahead, the board estimates that maintaining the benchmark rate at its current level is appropriate," the bank stated.

The central bank noted that inflation is expected to continue its gradual decline toward the 3% target, but at a slower pace than previously anticipated. It now projects inflation to reach the target in the fourth quarter of 2027, rather than the second quarter of next year. As of mid-July, headline inflation, as measured by the consumer price index, stood at 3.10%, with core inflation at 3.95%. The bank acknowledged that the balance of risks for its inflation forecast remains tilted to the upside.

Regarding economic activity, the central bank indicated that the economy rebounded in the second quarter following a contraction in the first quarter. However, it cautioned that growth still faces significant downside risks.