Banxico’s unanimous decision to maintain rates at 6.50% reinforces peso strength, extending a 10-day rally amid inflation projections.
The Mexican peso rose to 17.21 against the USD, extending its 10-day rally after Banxico left interest rates unchanged at 6.50%. The central bank’s unanimous decision followed the end of its easing cycle in May, signaling stability in monetary policy.
Banxico projected headline and core inflation to decline gradually, targeting 3% by Q4 2027. For 2026, inflation is expected to settle at 3.5%. The bank noted persistent economic slack and downside risks to growth, while US jobless claims came in at 199K, below estimates of 202K.
The peso’s gains reflect confidence in Banxico’s stance, with traders pricing in prolonged rate stability. US labor data also supported risk sentiment, though Fed officials maintained a hawkish tone on inflation.