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MNI WATCH: Banxico To Cut 25BP Despite Peso Volatility

The Central Bank of Mexico's board will make its policy decision this Thursday.

MNI (BRASILIA) - The Central Bank of Mexico is expected to reduce its overnight interbank interest rate by 25 basis points to 10.25% Thursday, in its third consecutive rate cut, though a minority of analysts are betting on a hold due to the depreciation of the peso following Donald Trump’s election victory last week.

The peso’s weakness, losing about 2% since last Wednesday, also raises doubts about the unanimity of the upcoming monetary policy decision. Investors are concerned about U.S. immigration policies which may affect Mexico and potential tariffs under Trump.

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MNI (BRASILIA) - The Central Bank of Mexico is expected to reduce its overnight interbank interest rate by 25 basis points to 10.25% Thursday, in its third consecutive rate cut, though a minority of analysts are betting on a hold due to the depreciation of the peso following Donald Trump’s election victory last week.

The peso’s weakness, losing about 2% since last Wednesday, also raises doubts about the unanimity of the upcoming monetary policy decision. Investors are concerned about U.S. immigration policies which may affect Mexico and potential tariffs under Trump.

Keep reading...Show less