Banxico minutes highlight the high uncertainty derived from commercial policy globally

According to Banxico minutes published today, All members agreed that the period between decisions continued to be characterized by high uncertainty. Regarding the national economy activity, most members of the Central Bank of Mexico expect to continue to show weakness.

Banxico Minutas Keys

The majority recapitulated that since the last meeting the United States announced new tariffs. He highlighted those that the government of that country called reciprocal and that were announced on April 2. A member indicated that in the case of Mexico and Canada, reciprocal tariffs were not imposed in this period.

The majority recalled that inflation is currently at lower levels than those registered during the pandemic, accounting for the progress in the disinflation process. In the same way, they emphasized that the annual inflation of services accumulates seven consecutive months under 5% and They anticipate that general inflation conveys the goal in the third quarter of 2026.

The Governing Board with the presence of all its members, unanimously decided to reduce the objective for the interbank interest rate one day to a level of 8.50%. He also estimates that forward he could continue with the calibration of the monetary posture and consider adjusting it in similar magnitude. He stressed that the actions that are implemented will be such that the reference rate is consistent, at all times, with the required path to promote the orderly and sustained convergence of general inflation to the 3% goal within the planned period

The Governing Board evaluated the significant advance in the resolution of the inflation episode derived from global shocks. He judged that the fight against inflation is at a stage in which it will be sought to take it from the current levels, around its historical averages prior to the pandemic, to the goal of 3%. He also estimates that forward he could continue with the calibration of the monetary posture and consider adjusting it in similar magnitude. It provides that the inflation environment allow to continue with the cycle of cuts to the reference rate, although maintaining a restrictive position.

The Central Bank reaffirms its commitment to its priority mandate and the need to persevere in its efforts to consolidate a low and stable inflation environment.

Mexican weight reaction

The Mexican weight has gained ground after the minutes, leading to USD/mxn first around 19.37 and then at 19.33. Currently, the US dollar operates against Mexican peso over 19.33, falling 0.27% today.