Banxico’s rate hike unlikely before June 2016

Central Bank of Mexico released the minutes of the October 29 meeting. The Bank hold the reference rate unchanged at 3.00%. Banxico is expected to wait till domestic conditions improved to adjust the monetary policy rather than reacting to the Fed's rate hike. 

The industrial activity in the United States bounce bank, MXN seems softer. Therefore, some of the board members believe the economic activity in Mexico will improve in the coming months.

Consumption in the economy should continue growing and thereby, assist the total payrolls to recover and improve confidence. The board is waiting for the U.S decision on rate hike, but they may not act immediately. Banxico will not hike in December, but the Bank wait until June 2016, says Barclays.