Rabobank economists expect Banxico to cut the key rate by 50p to 5.50% on Thursday, May 14. The USD / MXN is trading at 24,261.
“We expect Banxico to lower the policy rate by 50 basis points to 5.50% on Thursday May 14. We continue to see Banxico continue to lower rates until 4.50% is reached. “
“Our fair value model still indicates USD / MXN at 22, but a downward extension below this level would require trade flows and we still believe that the pair will mainly trade in a 23-25 range with a bias around the handle 24.5. “