Headline: Mexican Central Bank Pledges Continued Monetary Easing Amid US Tariff Uncertainty
Summary:
* The Banco de Mexico (Banxico) has reaffirmed its commitment to monetary policy easing despite the potential impact of proposed US tariffs on Mexican exports.
* Members of the central bank's board acknowledge a "new stage" in monetary policy, indicating a willingness to implement rapid adjustments to achieve the inflation target of 3%.
* Banxico reduced its key rate by 50 basis points in February, with some members suggesting another half-point cut at the next meeting in March.
* The board highlighted the risks posed by US tariff policies, which could lead to inflationary pressures or economic weakness.
* Annual inflation in Mexico has slowed to 3.59% in January, and Banxico anticipates continuing the rate-cutting cycle, albeit maintaining a restrictive stance.
* The bank also discussed the reference rate differential with the US Federal Reserve, which remains elevated.
* Banxico-watchers are awaiting the impact of the appointment of Jose Gabriel Cuadra as a new board member.
* The next rate-setting decision will be announced on March 27.