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Itau Say Banxico Minutes Consistent With March Rate Cut

MEXICO
  • Following the lower-than-expected bi-weekly CPI inflation data today, Itau believe that the Banxico minutes are consistent with a 25bp rate cut in March.
  • They note that, “the tone of the minutes seems consistent with a rate cut of 25-bp in the March meeting. While two Board members seem more cautious for a rate cut in the next meeting given the risks associated to a rebound in non-core inflation, today’s inflation figures, where non-core inflation slowed, eases those concerns. Our end of year policy rate forecast stands at 9.50%.”

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