Quotes from Barclays Capital:
-Banxico's monetary policy still dependent on Fed action, FX pass-through, and economic activity. The final message is that Banxico will continue monitoring the relative monetary position with respect to the US, the FX behavior and its possible effects on inflation and the level of slack of the economy. Our macro outlook suggests that Banxico has room to remain on hold until December this year.
-However, a sooner-than-expected action by the Fed increases the likelihood of a pre-emptive action by Banxico on the back of preserving financial stability. Nevertheless, today's FOMC minutes reveal that many Fed officials were inclined to keep the zero rates for longer. Until we get more clarity, we stick to our view that Banxico will remain on hold at the next March 26 meeting.
