Mexico Interest Rate

Executive Summary * Banxico is widely expected to deliver another 50bp policy rate cut to 8.50% on Thursday, amid mounting concerns about the growth outlook. * This would be the third consecutive 50bp cut, in line with prior guidance in the March statement which signalled further cuts of a similar magnitude ahead. Recent resilience of the Mexican peso should provide encouragement for the Board in its decision. * The latest pick-up of inflation is unlikely to derail the expected move, although it induces some uncertainty for rates at year-end, turning focus to what signals are provided for the subsequent monetary policy meeting in June. * Click to view the full preview here: https://mni.marketnews.com/4j1ye1B.

The Central Bank of Mexico's board will gather Thursday to decide the next move in monetary policy.