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Banxico will meet today and analysts at Nomura expect rates to remain on hold at 7.75%, following the 25bp hike in the June meeting.

Key Quotes

“Despite leaving the door open to more hikes in its communique, we see a combination of a generally balanced output gap, already above neutrality rates and the expectation of inflation continuing to converge to lower levels in H2 as signalling a hold this time around. We also continue to see a cutting cycle beginning in 2019.”