Banxico slows the easing cycle but leaves the door open to further easing

Summary

The accompanying statement remained dovish but was more cautious. The Board remains more concerned about the economic outlook than the recent inflation rise.

Key points

• Key points:
• We think that the easing cycle has further to run
• With inflation edging lower, we expect Banxico to cut the policy rate to 3.75% by year-end and –to avoid an unwanted tightening– to 3.0% next year

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