Banxico fell 50 basis points when its statement did not provide much certainty or guidance, according to economists in the TD Securities report. The USD / MXN is trading at 23.9257.
“Banxico has unanimously reduced by 50 basis points as planned, providing a statement focused on the high degree of uncertainty due to Covid-19.”
“Although the continued depreciation of the MXN continues to pose an upside risk to inflation, it will not dominate the political debate.”
“There is nothing in this statement to convince us to deviate from our call for reductions of 50 basis points in the next three meetings, followed by two further reductions of 25 basis points to keep the policy rate at 3, 50% by the end of the year. “