CS Predicts Mexico Tightening

Credit Suisse is changing its view of Mexico rates, calling for a tightening because of inflation. “We are changing our call on monetary policy for Mexico for next week’s meeting. We now estimate that the central bank will tighten monetary policy by 25bp next Friday (20 June) to 7.75%,” says the shop. CS does not foresee the start of a tightening cycle but says future policy changes will continue to be data dependent.