Mexico published its August retail trade data yesterday. It came as a surprise on the upside. It rose 0.6 percent on a sequential basis in August. According to analysts, retail trade was expected to stagnate. This signifies that consumption continues to be a significant driver of the Mexican economy. But the Banxico’s rate hikes by a total of 175 basis points since the end of 2015 are expected to increasingly take their toll, according to Commerzbank. Thus there seems a limited scope for further hikes by the central bank.
The Bank of Mexico is expected to hike rates once more in December in line with the U.S. Fed. Banxico might hike rates by further 25 basis points, stated Commerzbank. Following the likely hike in December, the central bank is expected to take a long break. But if the Mexican economy recovers more rapidly, then the central bank is expected to tighten its policy more markedly due to concerns regarding inflation.
The country is due to publish the economic activity index for August today which would provide a further indication of the economy’s state. If the economic activity data also surprises on the upside, the Mexican peso’s recovery is expected to continue today, noted Commerzbank.


Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 



