Free Trial

Setback For AMLO, Heath On Rates

MEXICO

Setback for AMLO and his energy initiative yesterday. The Supreme Court ruled that changes in regulations for the country's electricity market giving priority to the state-owned utility over private power generators is unconstitutional.


Also, interesting commentary from Banxico's Heath yesterday:

  • Banxico to look at viability of cuts after April
  • Not too worried if inflation ends slightly above goal

He has made similar comments back in November but still proceeded to vote for a cut, dissenting against the board majority. Many have forecasted a rate cut at next week's meeting so his comments may muddy the waters regarding the resumption of the easing cycle.


USDMXN is 0.5% higher this morning, with broad dollar gains mostly responsible.

*Worth noting a rather chunky MXN expiry for today from DTCC: USD/MXN: Mxn20.50($1.8bln)

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.