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MNI Banxico Preview - Nov'24: 25BP Cut Seen, Board on FX Watch

Most analysts expect Banxico to deliver another 25bp cut in November, taking the overnight rate to 10.25%.

Executive Summary

  • Most analysts expect Banxico to deliver another 25bp cut in November, taking the overnight rate to 10.25%.
  • With the balance of risks to growth remaining biased to the downside and the most recent vote split shifting in a dovish direction, the continuation of a gradual easing cycle appears most likely at this juncture.
  • However, a hawkish surprise cannot be completely ruled out amid stubborn headline inflation and significant MXN volatility in recent weeks.

Click to view the full preview: MNI Banxico Preview - Nov 2024.pdf

 

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Executive Summary

  • Most analysts expect Banxico to deliver another 25bp cut in November, taking the overnight rate to 10.25%.
  • With the balance of risks to growth remaining biased to the downside and the most recent vote split shifting in a dovish direction, the continuation of a gradual easing cycle appears most likely at this juncture.
  • However, a hawkish surprise cannot be completely ruled out amid stubborn headline inflation and significant MXN volatility in recent weeks.

Click to view the full preview: MNI Banxico Preview - Nov 2024.pdf

 

Keep reading...Show less