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MEXICO: Analysts Divided Over Banxico Decision, Risks Tilted Towards 25bp Cut

MEXICO
  • Analysts appear evenly divided over the outcome of next week’s Banxico decision. Prior forward guidance suggested greater willingness to consider a rate cut in August, and the recent softening of US data and dovish repricing for the Fed should bolster the case to restart policy easing in Mexico. However, a strong rebound in headline inflation promotes the need for caution and enhances the likelihood of a split vote.
  • A full preview of the decision with analyst views will be published on Tuesday next week.

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