Banxico will continue their rate cut cycle with a larger 50bp rate cut on Thursday

Summary

A 50bp rate cut would mark the beginning of a long overdue easing cycle.

Key points

• Key points:
• All members will vote for a rate cut, we expect a split vote again but now with a third Board member joining the two members that already saw the need for a faster pace of easing in September’s meeting
• A 50bp would not take the markets by surprise at all since one third of the analysts surveyed by Bloomberg are expecting a larger cut and the swap curve is pricing in a bit more than 50bp of easing for the rest of 2019

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