Mexico Banxico to hike right after 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.

"Banxico will hike right after the US Fed does, likely on September 21", states Barclays.

After this announcement, it can be expected that Banxico will hike rates right after the US Fed. 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.