Mexico: All eyes on inflation data – TD Securities

Analysts at TD Securities point out that Banxico will release its inflation report and will be a key release for the Mexican markets.

Key Quotes

“It will be an interesting release given the decision to ease policy without much shift in not only inflation dynamics (which are not very cut-supportive on core or expectations), but also rhetoric that would suggest Banxico is at greater ease with other risks facing Mexico (sovereign and Pemex downgrade risk, 2020 budget). This may set the tone as to how aggressively the market prices Banxico moving forward, though the policy meeting minutes to be released on Thursday will perhaps be more important in this regard.”