Banxico holds rates at 7.00%, as expected in unanimous decision

• The Governing Board deemed appropriate on this occasion to pause the rate-cutting cycle, consistent with the assessment of the current inflationary outlook. 
• Looking ahead, the Board will evaluate additional reference rate adjustments. (prev. Looking ahead, the Board will evaluate the timing for additional reference rate adjustments.)
• The risks for the trajectory of inflation are considered closer to balance, but they remain biased to the upside

Banxico's decision to hold rates at 7.00% aligns with market expectations, which signals stability in their monetary policy given current inflation concerns. The shift in language regarding future adjustments suggests a more cautious approach, indicating that while inflation risks are balanced, there remains an upward bias that could influence following rate decisions. This may lead traders to reassess their views on MXN and related assets, anticipating a more nuanced policy stance moving forward.