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Deutsche Bank Sees Mexico's Central Bank Reaching Terminal Rate of 6.75% in Q1 2026; Comments on Peso

BY MT Newswires | ECONOMIC | 08/11/25 12:29 PM EDT

12:29 PM EDT, 08/11/2025 (MT Newswires) -- Mexico's central bank (Banxico) decided to lower the policy rate 25bp to 7.75% last week, as expected, noted Deutsche Bank.

The decision was taken by a 4-1 majority, in which Deputy Governor Jonathan Heath favored standing pat.

The bank continues to pencil in the policy rate closing the year at 7.25% and reaching a terminal level of 6.75% by Q1 2026.

This path entails a pause in November, a call that likely faces downside risks given the latest labor market metrics in the United States.

Deutsche Bank expects USD/MXN to trade in the 18.5-19 range.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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