Banxico to keep rates at 3.0% – BBH

FXStreet (Edinburgh) – The Research Team at BBH expects the Mexican central bank to stand put at today’s meeting.

Key Quotes

“Mexico central bank meets and is expected to keep rates steady at 3.0%”.

“Mid-July CPI came in lower than expected at 2.76% y/y vs. 2.87% consensus”.

“This was the lowest since at least 1989, and moves further below the 3% target”.

“Real sector data remains fairly soft. Under these conditions, we do not expect Banco de Mexico to make good on its intent to hike rates this year”.

USD/MXN is making new all-time highs this week, yet there simply has been no inflation pass-through to date”.

The Research Team at BBH expects the Mexican central bank to stand put at today’s meeting…

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