Mexico: Downside pressure on the economy - TDS

TD Securities analysis team suggests that the Mexico’s April economic activity should continue to show the downside pressure on the economy, supporting market positioning for rate cuts from Banxico.

Key Quotes

“In this regard, bi-weekly CPI is expected to show a further reduction to near 4% on headline. We currently forecast convergence to the 3% target in the coming quarters, however this remains sensitive to shocks as well as inflation expectations.”