Mexico: Central bank is likely to raise interest rates by 25bps - Rabobank

Mexico’s central bank is likely to raise interest rates by 25bps due to prevailing risk of further depreciation of the Mexican peso, according to Rabobank’s Senior Market Strategist, Christian Lawrence.

Key Quotes

“Although the Bank is focused on inflation and not the currency itself, the significant depreciation of MXN has raised pass-through and pushed inflation expectations higher.”