Banxico leaves rates and tone unchanged

Summary

As widely expected, Banxico left the monetary policy rate unchanged at 8.25%. The decision was unanimous, as we anticipated. The wording and tone of the statement remained hawkish and was little changed from the previous one (March 28). As we anticipated, the hawkish tone continues to signal a cautious approach.

Key points

• Key points:
• Banxico is far from ready to shift to an easing bias.
• The Board continues on a cautious wait-and-see approach, not a ready-to-hike disposition.
• We continue to think that Banxico is likely to shift to an easing bias in the second half of the year.

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