25 Mar 2015
Banxico to leave monetary policy unchanged – TDS
FXStreet (Edinburgh) - In light of tomorrow’s Banxico meeting, strategists at TD Securities expect the central bank to refrain from cutting rates.
Key Quotes
“Both we and the market expect Banxico to leave the key overnight rate on hold at 3.0% at tomorrow’s meeting”.
“With inflation coming in right on target (February CPI was 3.0% y/y), we expect rates to remain on hold for some time still, expecting that Banxico will only move to raise rates in the third quarter”.
“We continue to expect that Banxico will only begin to consider raising rates once there is clarity on the timing of the Fed raising rates in the US”.
“We also believe that Banxico would prefer to wait for the Fed to move before following suit. As such, we continue to expect Banxico to keep rates unchanged at 3.0% until much later in the year”.
Key Quotes
“Both we and the market expect Banxico to leave the key overnight rate on hold at 3.0% at tomorrow’s meeting”.
“With inflation coming in right on target (February CPI was 3.0% y/y), we expect rates to remain on hold for some time still, expecting that Banxico will only move to raise rates in the third quarter”.
“We continue to expect that Banxico will only begin to consider raising rates once there is clarity on the timing of the Fed raising rates in the US”.
“We also believe that Banxico would prefer to wait for the Fed to move before following suit. As such, we continue to expect Banxico to keep rates unchanged at 3.0% until much later in the year”.