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Sell-Side Sees Few Implications From Banxico QIR

MEXICO
  • Tuesday's Quarterly Inflation Report did little to change views among the sell-side, with most seeing the inflation and growth views as infitting with the August rate decision.
  • The bank raised their growth forecast for 2021 to 6.2%, a 0.2ppts uplift, while inflation projections were held unchanged at 5.7% for end-2021 and 3.4% for end-2022 - retaining their view that current price pressures are "predominantly transitory".
  • In an interview following the QIR, Banxico governor de Leon stated that FX reserves (amounting to over $200bln) would be used to strengthen the purchasing power of the MXN.
  • Manufacturing PMI data crosses later today at 1530BST/1030ET, with IMEF manufacturing and non-manufacturing indices at 1800BST/1300ET.
  • President AMLO is due to give his Presidential Address at 10am local time (1600BST/1100ET), while Banxico deputy governor Espinosa speaks at a Dallas Fed event at 6.30pm local time (0030BST/1930ET).

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