Banxico is expected to remain ‘on hold’ this week – BBH

FXStreet (Edinburgh) - The research team at BBH, expects the Mexican central bank to leave its monetary stance unchanged at this week’s meeting.

Key Quotes

“Banco de Mexico meets Thursday and is expected to keep rates steady at 3.0%”.

“Despite hawkish official comments, CPI remains near the 3% target and core inflation is falling to cycle lows”.

“Barring a huge collapse in the US and/or Mexican economy, we do not believe the central bank can justify a rate hike this year”.

“The weak peso is not an issue, as there has been no inflation pass-through yet”.