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”.