- Analytics
- News and Tools
- Market News
- USD/MXN: Peso to remain at high levels for the time being – Commerzbank
USD/MXN: Peso to remain at high levels for the time being – Commerzbank
Banxico's wait-and-see stance suggests continued MXN strength, economists at Commerzbank report.
Banxico is unlikely to be in a hurry to cut rates
When will the Mexican central bank (Banxico) start cutting interest rates? A few hours before the rate decision, the bi-weekly inflation data will provide insight into the current inflation dynamics. The more pronounced the decline in the stubbornly high core inflation rate, the more the market may hope for a first cautious signal regarding the start of a rate cut in the coming months and trade the peso more cautiously accordingly. However, we expect such hopes to be dashed.
With core inflation continuing to decline slowly and the Fed keeping the prospect of further rate hikes on the table, we believe that Banxico is unlikely to be in a hurry to cut rates, especially as the growth outlook has recently improved.
We expect Banxico to keep its cards close to its chest for the time being, and to maintain its wait-and-see stance as well as its key rate. Given the attractive real interest rate, this paves the way for the MXN to remain at high levels for the time being.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
