Hawkish Banxico expected ahead in the week – BBH

In view of analysts at BBH, the Mexican central bank could strike a hawkish tone at its quarterly inflation report later in the week.

Key Quotes

“Banco de Mexico releases its quarterly inflation report Wednesday”.

“CPI, core CPI, and PPI measures have been accelerating, suggesting a great pass-through from the weak peso. As such, the report may have a hawkish slant. Mexico then reports July PMIs on Thursday”.

“Banco de Mexico next meets September 29.  No action is likely then, but we expect a hawkish tone in the statement too”.