Mexico to Make Rate Call

Mexico’s central bank is expected to hold rates at 4.50% at today’s meeting. “We believe the central bank of Mexico will become even more dovish in its tone [today], with respect to the previous statement. While Banxico will keep the policy rate unchanged at 4.5%, the most likely scenario is for it to highlight the moderating pressures on inflation,” Nomura says. Mexico has held since July 2009, and in its December decision it pointed to ongoing weakness in the global economy and continued uncertainty.