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Banxico Preview – Thursday, May 13th – 1900BST/1400ET

MEXICO
  • The full preview with analyst views can be found here:
  • https://roar-assets-auto.rbl.ms/documents/9903/MNI%20Banxico%20Preview%20May%202021.pdf
  • Wait And See – Inflationary pressures have remained persistent and the window of opportunity to further loosen policy remains firmly shut. Banxico's governing board are likely to leave the policy rate unchanged at 4% in a unanimous decision, awaiting further evidence of whether the price pressures prove transitory and if metrics are likely to converge to target. Of more importance will be the quarterly report on June 2nd, at which Banxico may upgrade their 2021 growth forecasts, lessening the need for further stimulus at this stage.

MNI/Bloomberg


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