Published on Thursday, June 27, 2019

Banxico remains cautious but eases tone

Summary

Less hawkish wording suggest rate cuts later this year are likely.

Key points

  • Key points:
  • One member of the Board (likely Esquivel) voted for a rate cut
  • The statement was less hawkish signaling that Banxico took a small step towards easing
  • We continue to expect 50bp of rate cuts (to 7.75% by year-end), beginning in September

Geographies

Topics

Authors

Javier Amador BBVA Research - Principal Economist
Carlos Serrano BBVA Research - Chief Economist

Documents and files


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Report (PDF)

190627_BanxicoWatch.pdf

English - June 27, 2019

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