Mexico Could Cut Rates: Banamex

Higher inflation could lead Banxico to cut rates, says Banamex. Two preventive rate cuts of 25bp cut could come as soon as April and May, according to the shop. Mexico’s headline inflation could close at 3.5% in 2008, says Banamex, down from an earlier estimate of 3.8%. The Mexican bank also revised downward its 2008 Mexican GDP forecast to 2.2% from 2.9% amid further deterioration in the US.