MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

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: Itaú & HSBC Calling for 10.00% Year-End Rate, GS Expect Gradual Easing

MEXICO
  • *Itaú: Even though the MXN has depreciated by roughly 5% over the past month, the gradual disinflationary process, incremental declines in inflation expectations, and the softening in the activity outlook pave the way for Banxico to continue with a 25-bps cut in Sep. Itaú’s base case is for 25-bp rate cut in each of the remaining meetings this year, down to 10% by year-end.
  • *HSBC think current inflation dynamics, slower GDP growth and rate cuts from the Fed, will continue to give Banxico room to cut rates going forward (i.e. even if the decisions remain split). In their view, these factors should overshadow the potential rising MXN volatility that could stem from the reform process. HSBC forecast the benchmark rate at 10.00% by end-2024, implying 25bp rate cuts in meetings ahead.
  • *Goldman Sachs: Overall, core-goods inflation remains low (core-goods ex-food in particular; 1.71% yoy) and shows no visible signs of MXN weakness pass-through. Services inflation remains high and sticky but is now showing early signs of mild moderation. The large perishable food price shock has now started to mean-revert, a process that GS expect will continue through the end of the year. Finally, the recent decline in oil prices should also help to ease non-core price pressures, though MXN weakness may neutralize part of that effect. Overall, the August inflation release supports the continuation of a gradual monetary policy rate normalization cycle.
EM BulletMexicoBulletGlobalEmerging Market NewsRegion
EM BulletMexicoBulletGlobalEmerging Market NewsRegion

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.