2 May 2016
Banxico to remain on hold this week – BBH
In view of the research team at BBH, the Mexican central bank – Banxico – could refrain from acting at this week’s meeting.
Key Quotes
“Banco de Mexico meets Thursday and is expected to keep rates steady at 3.75%”.
“It has been on hold since the last intra-meeting emergency 50 bp hike to 3.75% in February”.
“CPI rose 2.7% y/y in March, below the 3% target and in the bottom half of the 2-4% target range. Barring a significant collapse in the peso, we think the tightening cycle is over for the time being”.
“Officials have expressed concern about inflation pass-through from the weak peso, but we simply haven’t seen any yet”.
Key Quotes
“Banco de Mexico meets Thursday and is expected to keep rates steady at 3.75%”.
“It has been on hold since the last intra-meeting emergency 50 bp hike to 3.75% in February”.
“CPI rose 2.7% y/y in March, below the 3% target and in the bottom half of the 2-4% target range. Barring a significant collapse in the peso, we think the tightening cycle is over for the time being”.
“Officials have expressed concern about inflation pass-through from the weak peso, but we simply haven’t seen any yet”.