Analysts at the BBVA Research Department continue to expect the Bank of Mexico (Banxico) to lower its policy rate more than what markets are pricing, to 3.0% at the end of the easing cycle, now seen in the second quarter of next years. Key Quotes: “Recent inflation levels likely reinforce the shift towards more cautiousness and might even make at least one member vote for a pause.” “The recent strengthening and outperformance of the Mexican Peso along with recent capital inflows should comfort Banxico.” “Not only do real rates remain positive in a context in which negative rates are warranted, going forward, they would increase if Banxico does not cut nominal rates with easing inflation, unnecessarily reverting some of the monetary policy easing. We do not think that will be the case. In spite of the current change in relative prices, there will not be any demand-side pressures in the coming quarters, giving Banxico room to further cut rates.” “We continue to expect that Banxico will slash rates much further than currently expected, until they are around 0% in real terms, but we now expect Banxico to slow the rate cut cycle (to 3.75% by year-end). We continue to think that the policy rate will reach 3.0%.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold Price Analysis: Elliott Wave downside targets point to the $1767 area FX Street 2 years Analysts at the BBVA Research Department continue to expect the Bank of Mexico (Banxico) to lower its policy rate more than what markets are pricing, to 3.0% at the end of the easing cycle, now seen in the second quarter of next years. Key Quotes: “Recent inflation levels likely reinforce the shift towards more cautiousness and might even make at least one member vote for a pause.” “The recent strengthening and outperformance of the Mexican Peso along with recent capital inflows should comfort Banxico.” “Not only do real rates remain positive in a context in which negative rates are warranted,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.