Above-target inflation means that it would require a major shock to the global economy for the Mexican central bank to cut interest rates this year. But with growth set to slow by more than most expect over the course of 2012, there is a much greater chance of a renewed monetary stimulus next year. The market (and consensus) has taken out some of the rate hikes that were priced in for the next 12 months, but Mexican bond yields still have further to fall.