2025.08.2116:49:54UTC+00Mexican Peso Steady After Banxico Minutes

The Mexican peso stabilized around 18.76 per USD, maintaining proximity to its one-month low of 18.88 observed earlier this month. This occurred as markets processed Banxico's decision to reduce its benchmark interest rate by 25 basis points to 7.75%. This decision was made through a divided vote and was tempered by a more cautious forward guidance from the bank. Notably, Banxico omitted previous commitments for further cuts, acknowledging that inflation continues to exceed its target level while economic growth remains modest. According to the minutes, headline inflation decreased to 3.51% in July, whereas core inflation stayed high at 4.23%. This situation indicates a dual scenario: while monetary policy is easing, there is still concern about inflation. Consequently, there are mixed reactions among investors; some see the rate cut as indicative of a dovish stance, whereas others are wary of ongoing inflationary pressures.