Banxico remains cautious but eases tone

Summary

Less hawkish wording suggest rate cuts later this year are likely.

Key points

• Key points:
• One member of the Board (likely Esquivel) voted for a rate cut
• The statement was less hawkish signaling that Banxico took a small step towards easing
• We continue to expect 50bp of rate cuts (to 7.75% by year-end), beginning in September

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