- Mexico central bank lowers benchmark rate to 6.75% from 7.00%
- Banxico board was not unanimous on the rate decision
- 3 members voted to cut rates to 6.75%
- 2 members voted to hold rates at 7.00%
- Balance of inflation risks remains tilted to the upside
- Headline inflation expected to converge to target in Q2 2027
- Board will evaluate additional rate adjustments going forward
- Policy outlook to consider all inflation drivers and external conditions
- Policy stance seen as adequate to address challenges, including Middle East conflict escalation
The USDMXN has moved higher (lower MXN) on the news. Technically, the price is moving away from the 200 and 100 hour MAs and moving toward a swing area between 17.9433 and 17.9697. The risk defining level is now the 100 hour MA at 17.8201. Below that a move below the 200 hour MA would be needed to put the sellers more in control. That MA is at 17.774.
