Mexico’s central bank has said it will slow its current easing cycle in 2026 as it awaits the full effects of tax reforms and new trade policies.

In its annual monetary policy report, published on January 27, the Bank of Mexico (Banxico) said headline inflation had stayed within its target of 3% with a tolerance range of plus or minus 1%.

However, it noted that two events could cloud the price outlook. The first was a reform to the special tax on production and services, which hiked levies on