No More Hikes In 2010

BMI View: We are becoming increasingly dovish towards Mexico's monetary policy outlook, as weak private consumption is exacerbated by what we expect to be another drop in US demand for the country's exports. Our end-2010 policy rate projection now stands at a below-consensus 4.50% (from 4.75% previously, implying no rate hikes this year), although we do not rule out the potential for another policy rate cut before year-end.

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