MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MEXICO: Additional Analysts Suggesting 50BP Banxico Cut a Viable Option

MEXICO
EM BulletMexicoBulletGlobalEmerging Market NewsRegion
  • The full MNI preview for today’s Banxico decision is here: https://mni.marketnews.com/4gEwoUg - While a 25bp rate cut remains the median forecast, a few analysts not included in our preview have suggested a 50bp cut remains a viable option later today.
    • BBVA acknowledge a forceful 50bp move would be a very welcome surprise and a sound policy decision. They expect USDMXN to top 20.50 in the near term and to consolidate around 19.80 by the end of the year.
    • ING: Financial markets price a 50% chance of a 50bp rate cut. ING believe Banxico could risk a 50bp rate cut today to ease high real rates quickly. However, the peso would suffer and their near-term bias for USD/MXN is 19.75 and above 20.00 should a 50bp cut be delivered today.
    • Commerzbank: With real interest rates still quite high and other central banks considering increasing the pace of easing, one might wonder whether Banxico will also start cutting rates by 50bps. However, this seems unlikely, at least for the time being. The reasons for this are the aforementioned stubborn inflation, but also the fact that the data from the real economy, while pointing to a slowdown, do not point to a significant economic downturn.
199 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The full MNI preview for today’s Banxico decision is here: https://mni.marketnews.com/4gEwoUg - While a 25bp rate cut remains the median forecast, a few analysts not included in our preview have suggested a 50bp cut remains a viable option later today.
    • BBVA acknowledge a forceful 50bp move would be a very welcome surprise and a sound policy decision. They expect USDMXN to top 20.50 in the near term and to consolidate around 19.80 by the end of the year.
    • ING: Financial markets price a 50% chance of a 50bp rate cut. ING believe Banxico could risk a 50bp rate cut today to ease high real rates quickly. However, the peso would suffer and their near-term bias for USD/MXN is 19.75 and above 20.00 should a 50bp cut be delivered today.
    • Commerzbank: With real interest rates still quite high and other central banks considering increasing the pace of easing, one might wonder whether Banxico will also start cutting rates by 50bps. However, this seems unlikely, at least for the time being. The reasons for this are the aforementioned stubborn inflation, but also the fact that the data from the real economy, while pointing to a slowdown, do not point to a significant economic downturn.