VIEW: In the wake of Thursday's 50bp cut.....>

MEXICO: VIEW: In the wake of Thursday's 50bp cut from Banxico (which met

consensus exp.), Goldman Sachs expect the central bank "to ease further in

coming meetings and to drive the policy rate down to at least 4.50% by end-2020

(risk increasingly skewed towards a lower level). This would still preserve an

attractive Mexico-US interest rate differential level and would still be

significantly higher than what a TR framework would dictate. In fact, at 4.50%

the policy rate would still be only slightly below the lower bound of the

estimated range for nominal rate neutrality (4.8%-6.4%), and it could be argued

that would still be a conservative stance vis-a-vis the expected sharp

contraction of domestic and external demand and the global monetary backdrop."