Mexican central bank cuts rates by 50 vs 50 bps cut expected

  • Rate decision from the Banxico

The consensus was for a 50 bps cut to 9.00% and that's what they delivered.

  • Decision was unanimous
  • Anticipates that the inflationary environment will allow it to continue toe rate cutting cycle
  • Board will consider adjusting rates by similar magnitudes
  • US policy changes have added uncertainty

USD/MXN is up 1.1% and I think that underscores tariffs much more than interest rates.

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