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Banxico Interest Rate Decision Due At 2000BST / 1500ET

MEXICO
  • Most analysts expect Banxico to keep its overnight rate unchanged at 11.00%, with a small minority forecasting an outside chance of a further 25bp cut.
  • A more challenging external environment, combined with still persistent domestic inflation pressures, have prompted committee members to adopt a more cautious approach, signalling a likely pause this month.
  • However, a still very restrictive monetary stance, with rates far above the neutral level means that many analysts expect Banxico to resume its easing cycle at the next policy meeting in June.
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