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Analysts Predict Further Adjustments To Banxico Statement Likely

MEXICO
  • Morgan Stanley: Bias Towards Banxico Changing Forward Guidance
    • Morgan Stanley see rates on hold at 11.25% and look for further dovish details in the statement. Their bias is that policymakers might change the forward guidance, hinting that we are getting closer to policy easing given that most members stressed in the minutes a willingness to cut in 1Q24.
  • Itaú: Expect Statement Tone To Shed More Light On Easing Timeline
    • Itaú expect Banxico to keep the reference rate at 11.25%. They expect the tone of the statement to shed more light on the timing of the start of the easing cycle next year.
    • November’s statement adjusted its forward guidance noting rates will remain unchanged for a certain period of time, instead of a prolonged period of time.

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