MXN: Dovish Banxico and depreciation outlook – Commerzbank

Commerzbank’s Michael Pfister and Norman Liebke note that Mexico’s latest inflation data and Banxico minutes support a dovish stance. Commerzbank’s Michael Pfister and Norman Liebke note that Mexico’s latest inflation data and Banxico minutes support a dovish stance. With only minimal forecast revisions and no immediate need to react to the Iran war shock, they expect further rate… Commerzbank’s Michael Pfister and Norman Liebke note that Mexico’s latest inflation data and Banxico minutes support a dovish stance. Commerzbank’s Michael Pfister and Norman Liebke note that Mexico’s latest inflation data and Banxico minutes support a dovish stance. With only minimal forecast revisions and no immediate need to react to the Iran war shock, they expect further rate cuts if energy pressures stay contained and project that the Mexican Peso will weaken over coming months.Soft inflation response and weaker peso"Overall, the meeting minutes confirm Banxico’s recent, rather dovish decision… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.