Mexico Interest Rate Announcement (Dec.)

Mexico’s central bank unanimously decided to deliver another 25bp interest rate cut, to 10.00%, at today’s meeting and the statement flagged that the easing cycle will continue in the coming months. That said, future easing will hinge in large part on moves in the peso. A sharp sell-off in the currency, which is a key risk if Mexico becomes subject to US import tariffs under Trump, would probably prompt policymakers to pause their easing cycle.