Banxico to stay put at 3.75% – BBH

The Mexican central bank, Banxico, is expected to keep its benchmark rate at 3.75% at its meeting on Friday.

Key Quotes

“Banco de Mexico meets Friday and is expected to keep rates steady at 3.75%”.

“Inflation is starting to move higher, and so the 50 bp surprise hike last month seems justified”.

“However, the bank has already warned that it has not embarked on a steady tightening cycle”.

“The economy remains sluggish, and so aggressive rate hikes are not advisable, especially with fiscal policy also being tightened”.

The Mexican central bank, Banxico, is expected to keep its benchmark rate at 3.75% at its meeting on Friday…

(Market News Provided by FXstreet)