June 22, 2017 |
Mexico’s central bank is expected to hike its benchmark interest rate today by 25bp to 7%, following a similar move from the US Federal Reserve earlier this month.
Some analysts, however, believe today’s potential increase will mark the end of Banxico’s hiking cycle in a bid to decouple its efforts from the Fed.
The Mexican peso remains well anchored and the chances of adverse trade shocks seem to have diminished, according to Alberto Ramos, the head of LatAm economics at Goldman Sachs.
Central bank is expected to mirror the US Fed and increase its benchmark interest rate by 25bp