Banxico to hold rates at next meeting at 3.75%; seen at 4.25% by year-end - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    According to analysts from TDS, the central bank of Mexico (Banxico) will keep the interest rate unchanged on Friday at 3.75% after the 50bp extraordinary rate hike during February. They forecast the rate to rise toward 4.00% during the second quarter and to 4.25% by year-end.

    Key Quotes:

    “On Friday, in line with the unanimous consensus, we expect Banxico to hold its Overnight Rate at 3.75% while it waits for the next Fed rate hike.”

    “The surprise Banxico rate hike in February and the change in the intervention regime, as well as the more EM-friendly trading environment and higher oil prices, has helped the peso gain significant ground over the past five weeks. This should allow Banxico breathing room to wait for the Fed’s next move, and follow in fashion.”
    For more information, read our latest forex news.

Share This Page

free forex signals