Macroeconomic Forecast Mexico

November 2007 | Macroeconomic Forecasts

BMI View: Despite ongoing inflationary concerns, Banxico 's decision to keep overnight interest rates on hold at 7.50% took the sting out of a recent spike in the yield of the peso denominated 10-year MBono bond, alluding to economic weaknesses north of the border. Such fears are likely to presage a prolonged tightening pause, as a US-led slowdown will dampen Mexican export-heavy economic activity and thus imported inflation.

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