Banxico to hike rates right after the US Fed

Banxico announced changes to its monetary policy calendar to coordinate decisions along with the US Fed. The press release mentions that the relative monetary position with the US has an important effect in the evolution of the USDMXN, inflation expectations and price dynamics in Mexico, motivating an adjustment in the calendar. Also, this relative position weighs in a relevant manner on the board's decisions.

Barclays notes:

• After the announcement, we confirm our view that Banxico will hike rates right after the US Fed. 
  
  
• We believe that the Banxico's board would like to play it safe and make decisions under a more comfortable meeting calendar in order to adjust rates along with the Fed. 
  
  
• In that sense, if the Fed implements its first hike in the September meeting, Banxico will likely react to this announcement. As a consequence, we change our call for a September 21 hike as well.