Analysts predict that the Bank of Mexico is likely to maintain its interest rate at 7 percent for the remainder of the year due to strong economic recovery signals.
Analysts indicate that the Bank of Mexico (Banxico) is expected to keep its benchmark interest rate at 7 percent for the rest of the year. Mabrouk Chetouane, Global Markets Strategy Director at Natixis IM, highlights that this decision hinges on the country's economic growth trajectory. A stronger-than-expected recovery could compel Banxico to maintain the current rate, while a weaker economic performance might open up the possibility for a rate reduction.
Chetouane suggests that a shift in Banxico's stance regarding interest rates will not be observed until the latter half of the year. Should economic conditions evolve that warrant a change, adjustments to the interest rate may be possible. Conversely, he asserts that the likelihood of an increase in the benchmark rate is nearly zero under the current economic conditions.
