Banxico Deputy Governor Heath says at its next monetary policy decision, the board will carefully evaluate behaviour of core inflation. Will be watching core inflation, if it is in-line with forecasts there could be a rate cut as soon as March

• Near-enough no one thinks the inflation target will be met in Q2-2027.

Banxico's Deputy Governor Heath's commentary suggests a cautious approach to potential monetary easing, contingent on core inflation aligning with forecasts. Given that the market largely expects the inflation target to be unmet until 2027, this stance hints at a delicate balance between supporting growth and addressing ongoing price pressures, making any implied rate cut more nuanced than it may appear.