Heath Says Banxico Will Act If Inflation Fails To Fall Nearer To 5%

Overnight Banxico Deputy Governor Heath spoke in a podcast with Banorte:

• Sees new problem in Mexico's price formation
• Probable Mexico to raise minimum wage again, hitting CPI
• Holding Banxico rates until Fed hikes will depend on CPI
• Mexico inflation likely won't drop below 5% this year (BBG)
• "If inflation doesn't fall even by what we're expecting it to fall, to closer to 5%, during most of the rest of this year, we'll have to take action," Heath said.
• While hawkish at the margin, Heath reiterated that Mexico's recovery is still fragile and prolonged.

Today, Banco de Mexico Governor Alejandro Diaz de Leon speaks with South African Reserve Bank Governor Lesetja Kganyago at S&P's Global Emerging Markets Virtual Conference 2021. ADDL is due to speak at 10:20am Mexico City time.

• 1500BST/1000ET : Central Bank Economist Survey
• 1500BST/1000ET: May Remittances Total, est. $4.25b, prior $4.05b
• 1530BST/1030ET: June Markit Mexico PMI Mfg, prior 47.6