“Banxico cut by 50bps as expected and released a fairly well-balanced statement,” TD Securities analysts noted.
Key quotes
“One member dissented for a 25bp cut and the statement did open up some degree of flexibility going forward to potentially change the pace of easing.”
“There was not enough concern or commitment as of yet to change our view for another 50bp cut in September, as Banxico’s 12 and 24-month ahead forecasts for inflation to remain around the 3% target.”
“Watching 12 and 24-month ahead inflation expectation as well as policymaker rhetoric going into the September meeting will be key.”
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