Banxico likely to keep rates unchanged

In Mexico the focus of the market will be on Thursday's Banxico meeting. A stable inflation outlook, the moderate pace of economic activity ,and restrained FX pass-through, coupled with the delay in Fed's hiking cycle should keep Banxico on hold. 

"As such, no change in the overnight rate is anticipated. However, a slightly dovish tone is likely, as the macroeconomic environment suggests downside risks to growth. Given our expectations for the policy decision we keep recommending holding duration risk in local assets", argues Barclays.

The week is light on data, with the Economic Activity Index the main release, an expansion of 0.1% m/m is foreseen (1.8%y/y vs consensus 2.28%y/y), estimates Barclays.