Banxico could hike rates following the Fed – Scotiabank

FXStreet (Edinburgh) - Senior Currency Strategist at Scotiabank Eduardo Suarez believes the Mexican central bank could let the Fed be the first one to hike rates, following suit soon afterwards.

Key Quotes

“Our view is that pre‐empting the Fed is very tough to do, hence we expect Banxico to keep reinforcing that it will track the Fed in order to mitigate the disruptive impact on the aftermath of the Fed’s hike, and will move right after”.

“If the Fed’s tightening results in a sharp depreciation of MXN, the FX Commission could take additional measures to the current FX measures as necessary”.