Two of the five members of the Mexican central bank's monetary policy council signaled their doubts about the necessity of another rate hike, minutes published on Thursday showed.
The minutes surprised rather on the dovish side, even if principally, there is unlikely to be any doubt about the central bank's determination to fight inflation risks rigorously.
Mexico's April inflation data is likely to determine whether Banxico continues its tightening cycle beyond March or whether rate hikes are over.
We continue to see the MXN strengthening vs the USD. Banxico is likely to see some room for less restrictive monetary policy towards end of 2023, however, we think it will remain more cautious than the Federal Reserve, this is supporting a stronger peso view. USD/MXN levels below 18 are justified over the medium term. - Commerzbank

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