The Mexican central bank, Banxico, is expected to keep its benchmark rate at 3.75% at its meeting on Friday. Key Quotes “Banco de Mexico meets Friday and is expected to keep rates steady at 3.75%”. “Inflation is starting to move higher, and so the 50 bp surprise hike last month seems justified”. “However, the bank has already warned that it has not embarked on a steady tightening cycle”. “The economy remains sluggish, and so aggressive rate hikes are not advisable, especially with fiscal policy also being tightened”. For more information, read our latest forex news.