Mexico: Banxico likely to hike overnight rate by 25bps to 6.75% - TDS
|The research team at TDS points out that today in Mexico, we have the Banxico rate decision and even though the consensus is for no change in the Overnight Rate, but 9/26 respondents in the Bloomberg survey expect, like TDS, a 25bps hike to 6.75%.
Key Quotes
“We believe that, though inflation expectations have shown nascent stabilization, inflation momentum remains and that there is greater capacity for a policy error / loss of credibility if Banxico pauses now, only to hike again later. We bring forward our prior call for a 25bp hike of the Overnight Rate in June to May, leaving June contingent on future inflation outcomes, and the focus that Banxico places on the U.S. – Mexico rate differential.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.