Mexico: Banxico to leave the policy rate on hold - Rabobank

Christian Lawrence, Research Analyst at Rabobank, fully expect Banxico to leave the policy rate on hold at 6.50% today.

Key Quotes

“Banxico will likely maintain a hawkish bias and we forecast another two 25bp hikes this year.”

“MXN should remain well supported while volatility is low and carry trades are en vogue.”

“Risks relating to US trade policy remain a clear dark cloud on the horizon and have the potential to drive USD/MXN meaningfully higher in short order.”