LatAm Daily | Banxico is expected to keep the MPR at 3.25% in Mexico

Summary

The central bank’s communication suggests that US MP remains an important factor in its decisions, despite concerns arising on currency depreciation that could lead to high inflation. We expect the next rate hike in 2Q16 in line with the Fed, since risks to financial stability have not materialised. Exports are expected to fall in Colombia, pressuring the CA deficit.

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