No Change Seen for Mexico Rates

Analysts expect Mexican rates to stay put. Morgan Stanley says Banxico is likely to once again keep the monetary policy rate unchanged at 4.50% today and throughout 2010. It adds that after a temporary increase early in the year, inflation has eased and seems on track to undershoot Banxico’s forecast path in coming quarters, based on consensus expectations. Barclays also expects the rate to remain unchanged until the end of the year and to then tighten to 5.25% in Q1 2011.