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Published on Wednesday, February 6, 2019 | Updated on Thursday, February 7, 2019

Banxico to begin a period of an extended monetary policy pause

Fall in inflation along with lower risks takes further hikes in the near-term off the table. Balance of risks to inflation improved in the intermeeting period with the recent rally in the MXN combined with a larger-than-expected fall in inflation in the first half of January. We expect the next move in the monetary policy rate to be a cut, but not until later in the year.

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