Banxico could follow the Fed in hiking rates – BBH

FXStreet (Edinburgh) - According to BBH Global Currency Strategy Team, the central bank of Mexico (Banxico) could start hiking rates by June, in tandem with the Fed.

Key Quotes

“According to the most recent minutes, Banco de Mexico has taken rate cuts off the table (for now)”.

“The weaker peso seems to be one of the key variables in their reaction function, and we believe it will help determine the timing”.

“If MXN continues to weaken at this pace, it is possible that Banxico will hike before or around the same time the Fed does (June, in our view)”.