Mexican Peso Snapshot
Although core inflation remains stubbornly elevated in both the US and Mexico, the signs of an eventual decline are clearly evident. Inflation is rolling over. Core Consumer Price, % Annual Change The Federal Reserve is on the verge of pausing – and ending – its rate hikes. This is impacting expectations for the Banco de Mexico. Monetary tightening cycles are ending. Cumulative change in Federal Funds Rate since initial increase, % Central bankers in both countries are closely aligned on the need for a “higher for longer” policy stance – and although markets are pricing in modest cuts in the...