MEXICO CITY - The Mexican peso showed signs of stabilization on Tuesday, trading near 17.47 against the US dollar, a slight increase of .14%. Investors are closely monitoring upcoming economic data, with Mexico's Consumer Confidence index set to be released tomorrow, followed by the highly anticipated inflation report from INEGI on Thursday.
These figures are expected to influence the monetary policy decisions of the Bank of Mexico (Banxico) under the leadership of Governor Victoria Rodriguez Ceja.
Banxico has recently raised its economic growth forecasts for the coming years but anticipates meeting its inflation targets only after 2024. This outlook is in line with observations made on November 23, noting a slight increase in annual inflation while core inflation showed a minor decline.
Deputy Governor Jonathan Heath hinted at the possibility of gradual interest rate decreases in the next year, emphasizing that any such moves would be made with considerable caution.
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