Yesterday’s inflation figures offered little relief: the seasonally adjusted underlying rate was approximately consistent with the previous two months, says FX analyst from Commerzbank, Michael Pfister.
Persistent inflation will delay Banxico cuts
“This is unlikely that he has relieved concerns at the Mexican Central Bank about a new increase in inflation. In his last decision, Banxico indicated that he is likely to make up the rhythm of the cuts of interest rates in the near future.”
“Although we will receive more data before the next meeting in early August, including the initial estimation of GDP for the second quarter, the most recent figures will probably be enough to justify a slowdown. In the short term, speculation about more cautious interest rate cuts could support weight.”
“However, in the medium term – that is, towards the end of the year – we still expect more cuts of interest rates than the market currently anticipates.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
