Banxico announced its latest rate decision on Thursday, March 21, when it decided to cut rates for the first time since 2021.
USD/MXN barely moved on the decision. Economists at Rabobank analyze the pair’s outlook. Support at 16.60 to hold Banxico cut the overnight policy rate 25 bps to 11.00% on Thursday, March 21. The decision revealed a 4 to 1 split with Irene Espinosa dissenting in favor of a no-change decision. The accompanying inflation forecasts were largely unchanged except for a 0.
1ppt upward revision to the 2024 headline CPI forecast which was raised from 3.5% to 3.6%. Inflation up, rates down. Our forecast for the end of year policy rate is unchanged at 9.50% as we are now assuming 25 bps cuts at every meeting; previously, we had expected a pick up to 50 bps clips in Q4. USD/MXN hardly moved in response to the decision given it was largely priced in. We continue to see 16.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mexican Peso gains ahead of Fed’s decision, USD/MXN dipsThe Mexican Peso (MXN) recovers some territory on Wednesday against the US Dollar (USD) ahead of the US Federal Reserve’s (Fed) monetary policy decision at 18:00 GMT.
Read more »
Mexican Peso under pressure ahead of expected Banxico rate cutThe Mexican Peso begins the session on the defensive against the US Dollar as investors prepare for the Bank of Mexico (Banxico) monetary policy decision.
Read more »
Mexican Peso hits new YTD high against US Dollar amid Banxico rate cut speculationThe Mexican Peso registered a new year-to-date (YTD) high against the US Dollar on Wednesday amid a scarce economic schedule in the United States (US).
Read more »
Mexican Peso weakens amid Mexico’s holiday ahead of FOMC and Banxico decisionsThe Mexican Peso (MXN) depreciates sharply against the US Dollar (USD) on Monday as Mexico’s markets remain closed in the observance of Benito Juarez’s birth, a former President of Mexico.
Read more »
USD/MXN inches higher to near 16.80, following US data and Banxico's policy rate cutUSD/MXN rises on stronger US Dollar (USD) following mixed S&P preliminary Purchasing Managers Index (PMI) data and robust weekly Jobless Claims from the United States (US).
Read more »
Mexican Peso falls against strong US Dollar as FOMC meeting loomsThe Mexican Peso depreciated in early trading during the North American session as the US Dollar climbed some 0.25%, based on the US Dollar Index (DXY).
Read more »