Sacha Tihanyi, deputy head of emerging markets strategy at TD Securities, sees Banxico cutting rates by 25bps, and continuing to signal a dovish bias.
Key Quotes
“We see dissents continuing for an increase in the pace of easing, but given the slightly improved performance and outlook for the Mexican economy, in addition to progress on the U.S.-China trade war, and a less dovish Fed, dissent may ebb somewhat in the near future.”
“FX: MXN, in a better risk environment, will be neutral-to-positive in the short term on a reduction in rates, though too aggressive an easing signal will expose the peso during periods of higher volatility.”
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