We think the prevailing view that close economic ties with the US will force Mexico to raise interest rates if, as expected, the Fed starts to tighten later this year is wrong. Indeed, with lower oil prices likely to mean that fiscal policy becomes less supportive this year, its possible that Banxico will loosen monetary policy – with an interest rate cut possible as soon as this quarter.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services